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G G GOVERNMENT OVERNMENT OVERNMENT R R RESTRUCTURING ESTRUCTURING ESTRUCTURING T T TASK ASK ASK F F FORCE ORCE ORCE F F FINAL INAL INAL R R REPORT EPORT EPORT 2010 2010 2010

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Page 1: GOVERNMENT RESTRUCTURING - innovations.harvard.edu · John Gasparich served as state budget director under Governor Gary Johnson and was a member of last year's governor's committee

GGGOVERNMENTOVERNMENTOVERNMENT RRRESTRUCTURINGESTRUCTURINGESTRUCTURING

TTTASKASKASK FFFORCEORCEORCE

FFFINALINALINAL RRREPORTEPORTEPORT

201020102010

Page 2: GOVERNMENT RESTRUCTURING - innovations.harvard.edu · John Gasparich served as state budget director under Governor Gary Johnson and was a member of last year's governor's committee

The New Mexico Legislative Council Service 411 State Capitol

Santa Fe, New Mexico 87501 (505) 986-4600

www.nmlegis.gov 202.183820

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TABLE OF CONTENTS LETTER FROM THE CHAIRMAN EXECUTIVE SUMMARY AND OVERVIEW OF RECOMMENDATIONS ............................. 1 Fiscal Outlook ........................................................................................................................... 2 Work Plan ................................................................................................................................. 3 Process ...................................................................................................................................... 5 Core, Essential Services ............................................................................................................ 6 Short- and Long-Term Goals .................................................................................................... 7 Executive Reorganization ....................................................................................................... 10 Fiscal Impact ........................................................................................................................... 20 Further Study .......................................................................................................................... 21 CHAPTER 1 — HISTORICAL PERSPECTIVE ......................................................................... 25 Carruthers Report Findings and Recommendations ............................................................... 27 CHAPTER 2 — GUIDING PRINCIPLES ..................................................................................... 29 Efficiency ................................................................................................................................ 30 Effectiveness, Including Cost Savings .................................................................................... 32 Accountability and Transparency ........................................................................................... 32 CHAPTER 3 — INTERIM STUDIES ............................................................................................ 35 CHAPTER 4 — DEPARTMENT ORGANIZATIONAL CHARTS ........................................... 43 Commerce Department ........................................................................................................... 44 Department of Finance and Administration and General Services Department ..................... 45 Department of Public Safety ................................................................................................... 46 Energy, Minerals and Natural Resources Department ............................................................ 47 New Mexico State Government Departments ........................................................................ 48 CHAPTER 5 — BOARDS, COMMISSIONS AND SUNSETS .................................................... 49 CHAPTER 6 — PUBLIC EMPLOYEE AND GENERAL PUBLIC SURVEYS AND COMMENTS ............................................................................................................... 55 CHAPTER 7 — PUBLIC SCHOOL AND HIGHER EDUCATION .......................................... 59 Public Schools ......................................................................................................................... 59 Higher Education .................................................................................................................... 63 CHAPTER 8 — HEALTH CARE FINANCE AND ADMINSTRATION .................................. 67 CONCLUSIONS ............................................................................................................................... 71

Appendices APPENDIX A — Task Force Enabling Legislation Executive Reorganization Act APPENDIX B — Endorsed Legislation Chart Agency Sunset Table Boards and Commissions Spreadsheet Selected Section-by-Section Analyses APPENDIX C — Public School Funding Formula State Equalization Guarantee Distribution Calculation GRTF Staff Analyses of Carruthers Report Recommendations on K-12 Education Lottery Tuition Fund Sustainability Higher Education Funding Formula Medicaid Overview and Operational Structure APPENDIX D — State Government Efficiencies and Effectiveness Survey VOLUME 2 — Task Force Agendas and Minutes

Page 4: GOVERNMENT RESTRUCTURING - innovations.harvard.edu · John Gasparich served as state budget director under Governor Gary Johnson and was a member of last year's governor's committee
Page 5: GOVERNMENT RESTRUCTURING - innovations.harvard.edu · John Gasparich served as state budget director under Governor Gary Johnson and was a member of last year's governor's committee

December 2010 On behalf of the government restructuring task force, I am pleased to transmit its final report to Governor Susana Martinez and the fiftieth legislature, first session. The report includes recommendations of the task force, including near- and longer-term ideas to improve state government by making it more efficient and cost-effective as well as more responsive and accountable to New Mexico citizens. Some recommendations have the potential to save millions of dollars while others will have less dramatic, but nonetheless important, changes by eliminating or streamlining government agencies and programs. The task force undertook its statutory charge to study the current resources of state agencies, programs, services, funding and policies and the public needs served by them, including recommendations of the 2009 governor's committee on government efficiency (the Carruthers committee); the need for consolidation of agencies and elimination or reduction of redundant, duplicative or overlapping programs and services; and current and projected revenue estimates for the next three to five years. New Mexico is in one of its toughest financial times since the great depression, and the legislature and executive must work together to ensure that state government is able to provide essential services to its citizens at the least cost to its taxpayers. To come to that will take more than one interim's work, and the task force acknowledges there is still work to be done if state government and state funding are to be right-sized for the next decade. This report includes issues and ideas that should be explored further, by this task force or some other legislative/executive process. The task force members stand ready to assist the new governor and the new legislature in this continued endeavor. The task force membership included public members who have experience in state government finances and administration, and their assistance proved invaluable to the work of the task force. Patrick Baca of the Pueblo of Sandia served as state secretary of labor under Governor Bruce King and as transportation director and chief of staff for the public regulation commission. John Gasparich served as state budget director under Governor Gary Johnson and was a member of last year's governor's committee on government efficiency. Michelle Lujan Grisham served as cabinet secretary for both the aging and long-term services department and the department of health. Jim O'Neill was the deputy secretary for tax policy at the taxation and revenue department for many years. David Ortiz

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was the long-time administrative services director of the general services department and retired from that department as deputy secretary; he currently serves on the Pojoaque school board. Dr. Dan Lopez served as secretary of finance and administration and is currently the president of the New Mexico institute of mining and technology. The department of finance and administration was represented first by Secretary Katherine Miller and then Secretary-Designate Dannette Burch. Ms. Burch is the former deputy director of the legislative finance committee and served dual roles as deputy secretary of finance and administration and state budget director before being named to replace Ms. Miller. The task force gratefully acknowledges its debt to these members for sharing their knowledge and insights of New Mexico state government. The task force thanks the many individuals who provided assistance, information and insight instrumental in the task force's work. In particular, the task force appreciates the time and attention paid by state employees and citizens who filled out the task force's online surveys and who commented in person at task force meetings or online at the task force's web site. The task force could not have completed its work without the able assistance of its staff from the legislative council service, legislative finance committee and legislative education study committee; and the secretary's office, state budget division and office of education accountability of the department of finance and administration. This report is the result of extensive work during the interim, most especially by staff led by Jonelle Maison of the legislative council service. They compiled and presented information, analyzed ideas, drafted bills, provided fiscal impacts, tracked our progress and tried to keep us on point and steer us around the numerous pitfalls that any task force faces. On behalf of the entire task force, we thank them for their hard work and service, not just to the task force, but to the legislature and the state. As chairman, I would like to thank all the members of the task force for their enduring commitment and tireless efforts toward meeting their charge to improve state government. In particular, I want to thank my vice chairwoman, Representative Patricia A. Lundstrom, for her assistance and leadership during the interim. This report and its appendices and legislative package are available online at www.nmlegis.gov. Sincerely, TIM EICHENBERG New Mexico State Senator (District 15) Chairman

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/ 1 FINAL REPORT / 2010

TASK FORCE MEMBERSHIP & STAFF 

Legislative and Public Members 

Sen. Tim Eichenberg, Chairman Rep. Patricia A. Lundstrom, Vice Chairwoman  Patrick Baca Rep. Paul C. Bandy Rep. Keith J. Gardner John Gasparich Dr. Dan Lopez Sen. Linda M. Lopez Michelle Lujan Grisham Rep. Rick Miera Sec. Katherine B. Miller/Dannette Burch Sen. Steven P. Neville Jim O'Neill David Ortiz Sen. William H. Payne Sen. John Arthur Smith Rep. Luciano "Lucky" Varela  

Advisory Members Sen. Carlos R. Cisneros Sen. Mary Jane M. Garcia Rep. Joni Marie Gutierrez Sen. Stuart Ingle  Sen. Lynda M. Lovejoy Rep. James Roger Madalena Rep. Al Park Rep. Jeannette O. Wallace 

Task Force Staff    Legislative Council Service     Jonelle Maison     Kim Bannerman     Leslie Porter     Raúl E. Burciaga     Paul Tackett (until her retirement)    Legislative Finance Committee (LFC)     Cathy Fernandez     Brent Earnest    Legislative Education Study Committee (LESC)     Dr. David Harrell     Eilani Gertsner    Department of Finance and Administration (DFA)     Dannette Burch     Stephanie Lenhart     David Hadwiger    Office of Education Accountability (OEA)     Dr. Scott Hughes 

EXECUTIVE SUMMARY AND OVERVIEW OF RECOMMENDATIONS «»

The government restructuring task force follows in the footsteps of several prior efforts to

organize New Mexico state government to improve its efficiency and enhance its services to New

Mexico residents. Other initiatives include the New Mexico state reorganization committee appointed

by Governor Edwin Mechem in 1951-1952, also known as the Little Hoover committee; the 1967

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GOVERNMENT RESTRUCTURING TASK FORCE 2 \

effort under Governor Dave Cargo; the major 1977-1978 executive reorganization under Governor

Jerry Apodaca; and the committee on government efficiency appointed by Governor Bill Richardson,

also known as the Carruthers committee. The task force, under the leadership of Senator Tim

Eichenberg, chairman, understood its mandate to be:

(1) first, to find ways to increase efficiency and improve the way services are delivered

to the people of New Mexico by reducing or eliminating overlap and duplication; and

(2) second, to find ways to reduce the cost of government, given the current and

projected revenue estimates for the next three to five years.

The bedrock value maintained by the task force through its deliberations during this interim has

been to assure that the fundamental responsibilities of state government are retained. The lenses

through which the task force viewed its mandate were: efficiency, effectiveness, accountability and

transparency.

Inherent in the task force's work and in its recommendations is the understanding that

organizing and reorganizing government structures and services is an ongoing process. Problems and

issues rise to prominence and certain structures are needed to provide necessary services; however, as

problems and issues recede from importance, former structures may no longer be necessary or may

need to be redesigned. State government's ultimate purpose is to protect the short- and long-term

interests of the public in the most efficient and effective manner possible, and its organizing principles

must evolve, but the underlying requirements to ensure a responsive government that is efficient,

effective, accountable and transparent are immutable.

The task force quickly found that every interest in government is entrenched and every interest

believes it is vital. The members were repeatedly frustrated as presenters were either unable or

unwilling to offer practical suggestions for changes that would lead to efficiency, effectiveness,

accountability and transparency. State officials and employees were provided multiple opportunities,

through testimony, comment and survey, to propose the best ways to streamline government or to

provide big ideas on how to reform government and its relationship to taxpayers and citizens; however,

the task force received very few recommendations from government, institutions of higher education or

public schools. The task force encourages the incoming administration to make a continued study of

government one of its top priorities, and the members stand ready to assist it in that very important

undertaking. Perhaps with new gubernatorial leadership, the chokehold these vested interests have on

the government's organization will be severed, or at least loosened.

Fiscal Outlook

It is important to put the task force's efforts into context. The task force was created in the

midst of the worst economic downturn since the great depression. The state's recurring revenues are

very sensitive to the performance of the U.S. and New Mexico economies in general and the petroleum

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/ 3 FINAL REPORT / 2010

sector in particular. During the boom years of

2005-2008, the state ran large recurring

revenue surpluses and expanded government

services and organizations. However, in just

two years, from fiscal year 2008 to fiscal year

2010, the previous four years of revenue gains

were wiped out, with a $1.2 billion, or 20%,

decline in revenue. The continued slow

growth for the New Mexico economy

translates into slow revenue growth. Total

recurring general fund revenue is not projected

to hit fiscal year 2008 levels until fiscal year

2015.

This precipitous decline in revenue and an increase in demand for government services due to

the economic downturn contributed to large recurring revenue shortfalls, with the gap in the budget

filled from general fund balances and other state funds as well as federal stimulus funds to supplant

what would have been needed from the state general fund. The legislature and the governor worked

together over the last two years to respond to the crisis of declining revenue by trimming expenditures

and expenses by approximately $800 million since fall 2008, including the loss of 2,400 full-time-

equivalents (FTEs), which is about 9% of the state work force, mostly through attrition, vacancies and

the hiring freeze. The federal American Recovery and Reinvestment Act of 2009, or ARRA, funds

provided needed supplantation of general fund for about $400 million of the budget reduction. The

legislature recognized that even those cuts would not be enough. The June 2010 consensus revenue

estimate indicated the state would be approximately $350 million short for fiscal year 2012, which will

begin on July 1, 2011 and for which the legislature will be appropriating in January. Through the

summer and fall, the sense of the fiscal experts was that the shortfall could rise to as much as $450

million. December brought a small glimmer of hope in the increase in revenue, but LFC leaders were

saying the shortfall would still be approximately $400 million, which means continued efforts, into the

draconian range, must be taken to ensure that the constitutional requirement for a balanced budget is

met. Against this backdrop, the task force worked through the summer and fall to craft organizational

recommendations and begin work on deeper, more far-ranging changes.

Work Plan

The work plan proposed by the task force recognized the fiscal condition of the state as an

opportunity for the state to examine the structure and operation of state government, rethink priorities

and ensure that programs are operated and services are provided in the most effective and efficient

© 2010 Albuquerque Journal (abqjournal.com) and John Trever - reprinted by permission

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GOVERNMENT RESTRUCTURING TASK FORCE 4 \

manner possible. The main questions to be asked during the interim were:

⋆ What are the essential services the state must deliver?

⋆ What is the most effective way to accomplish the state's goals with the funds available?

House Bill 237 (Laws 2010, Chapter 101) (HB 237) created the government restructuring task

force and it required the first meeting to be held no later than April 22. The task force held a meeting

on April 21 and selected Senator Tim Eichenberg as chairman and Representative Patricia A.

Lundstrom as vice chairwoman. At that meeting, the task force received presentations on the

requirements of HB 237; a historical perspective of New Mexico government structure, funding and

previous restructuring initiatives; and a summary of other states' recent efforts to restructure their

respective state governments.

The law directed the task force to study the current resources of the state's agencies, programs,

services, funding and policies and the public needs served by them, including the:

(1) recommendations of the governor's committee on government efficiency;

(2) need for consolidation of agencies and elimination or reduction of redundant,

duplicative or overlapping programs or services;

(3) current and projected staffing needs of state agencies for full-time, part-time, term,

temporary and contract employees; and

(4) current and projected revenue estimates for the next three to five fiscal years.

Additionally, the task force was charged with soliciting public input, studying the restructuring

of state government that occurred from 1975 to 1978, examining all laws governing state government

and recommending legislation or changes. All state agencies were required to provide information to

the task force as needed.

The task force proposed to study the specific areas outlined in HB 237, as noted above. At its

first meeting, the task force members generally agreed that nothing would be off the table; that is, all

three branches of government and their respective agencies and programs as well as public schools and

higher education would be subject to review and possible restructuring. Specifically, the task force, in

determining what essential services state government should provide, proposed to:

(1) have the New Mexico legislative council direct each interim committee to include,

as a major part of each work plan, any findings and recommendations on the restructuring of any of the

agencies or programs that each committee reviews or oversees;

    (2) review the structure of state government as it exists and currently operates as well as

how the structure is set out in law;

    (3) identify areas of large expenditures;

    (4) examine the inventory of state agencies, boards and commissions created in law;

    (5) assess the effectiveness and efficiency of the various agencies and programs,

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/ 5 FINAL REPORT / 2010

particularly in light of the task force's consideration of what essential services should be provided;

    (6) request presentations by agencies to help the task force identify redundancies or

duplications and the benefits or consequences of consolidating or eliminating certain programs or

services;

    (7) explore the provision of online services to realize concomitant reduction in staff and

offices; and

  (8) review the sources of revenue, including efforts to better leverage existing funding

and identify alternative revenue sources.

The task force selected Tim Karpoff to be its facilitator and to assist it in its interim work.

The law provided that the task force be staffed by the legislative council service, as lead staff;

LFC; LESC; DFA; and OEA. Staff assigned to the task force were:

▸ for the legislative council service, Jonelle Maison, Kim Bannerman,

Leslie Porter and Raúl E. Burciaga;

▸ for LFC, Cathy Fernandez and Brent Earnest;

▸ for LESC, Dr. David Harrell and Eilani Gertsner;

▸ for DFA, Dannette Burch, until her appointment as secretary-designate;

Stephanie Lenhart; and David Hadwiger; and

▸ for OEA, Dr. Scott Hughes.

Process

The January 14, 2010 Carruthers report served as the conceptual blueprint for the task force

deliberations. The task force made a concerted effort to seek input across state government, higher

education and public schools and from the public. Several requests were made of all executive and

judicial agencies to identify programs that could be provided more efficiently or that were simply out

of date and should be eliminated; organizational structures that hampered the cost-effective delivery of

necessary services; and positions that could be combined or eliminated to streamline service delivery.

The New Mexico legislative council directed all other interim committees to focus their interim work

on ways to make the departments they oversaw or worked with more efficient, more effective and more

accountable and their functions and decisions more transparent. Through ten meetings, presentations

were heard on broad topics of governmental concerns. The task force was always interested in what

the public had to say about its work and it asked for public input in a variety of ways:

(1) it had public comment periods built into its agendas at every meeting;

(2) it posted an online comment page on the legislative web site, which asked,

principally, two questions:

(a) What are the essential services the state must deliver?; and

(b) What is the most effective way to accomplish the state's goals with the funds

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GOVERNMENT RESTRUCTURING TASK FORCE 6 \

available?; and

(3) it also posted an online survey for state employees and for public members. It had

hoped to ensure broader distribution of the state employee survey through the department of

information technology to every state employee email, but the governor's office declined to assist.

As a proponent of transparency, the government restructuring task force was the first interim

committee to begin audiocasting its meetings. In addition, information received or created by the task

force is available on the legislative web site at www.nmlegis.gov.

Core, Essential Services

The task force grappled with the question of the core, essential services that must be provided

by state government. As easily imaginable for a diverse group, there was not always agreement on

what government's role should be in the lives of New Mexico citizens or how that role should be

conducted. Most members agreed that one core function is to protect vulnerable populations such as

the elderly, the young and the poor, but how and to what extent was open to much debate. Through the

legislative health and human services committee, the task force considered ways to control spiraling

medicaid costs and implement efficiencies through a consolidated insurance purchasing with the risk

management division of the general services department (GSD), public school insurance authority and

retiree health care authority and the Albuquerque public schools health coverage entity while holding

down costs and improving services.

Members agreed on the need to have an educated work force and citizenry, but the further

question of how that should be accomplished was not so easily agreed upon. In the end, the task force

deferred to LESC as the experts to make recommendations to streamline public school funding and

governance; it is depending on the higher education department's master plan, completed in the winter

of 2010, to lead the way in reforming higher education funding. The task force also expects the

department to stop not only the proliferation of campuses and off-campus instruction, but to require a

significant contraction of bricks-and-mortar campuses.

All members agreed on the need for public safety and security, and concurred with the high

potential for cost savings as well as efficiencies by having a centralized department of public safety

(DPS) that includes homeland security, emergency management, state police, motor transportation and

the state fire marshal. All of these functions would likely be called into play during a catastrophe such

as a hazardous spill on the interstate or an explosion at the new uranium facility; even a weather-related

chain-reaction accident on I-40 during a winter blizzard would require the orchestrated coordination of

all divisions of the new DPS.

Members were again in unanimity over the need to strengthen financial controls and fiscal

oversight of state agencies. The task force expressed grave concerns over the scandals that have rocked

the state in the last several years in regional housing authorities, school districts and state government.

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/ 7 FINAL REPORT / 2010

Its recommendations include strengthening DFA's oversight role in state purchasing, personnel and the

public and higher education budgets. It recognizes the important role of the state auditor and hopes

that office will continue its aggressive move to ensure that all agencies and entities funded by taxpayer

money have current audits and are held responsible for adequately and ethically accounting for those

funds.

Short- and Long-Term Goals

At the beginning of the interim, Chairman Eichenberg and Vice Chairwoman Lundstrom

challenged the members to develop a small number of "big ideas" that would frame the task force's

work and recommendations. This exercise was done in recognition of the complexity of state

government and the range of interests served by state government. Three major themes emerged:

▸ executive agency consolidation and reorganization;

▸ refinements to the public and higher education systems; and

▸ new structures for the delivery of publicly funded health care and risk

management for state and local government employees, school personnel and public

retirees.

Under these broad themes, the task force made specific recommendations that have resulted in

26 bills, joint resolutions and memorials for introduction during the 2011 legislative session. The task

force realized that its work is part of a process to redefine the essential services of state government

and to structure government to deliver those services effectively. Its recommendation for short- and

long-term goals are summarized in the tables below and on the following pages. While several of the

short-term goals may take time to accomplish, more in the range of five years, they are included as

FISCAL 

∘  Review of revenue sources, particularly earmarked funds, and revenue collection 

  ∘  Return the appropriation process to each year's legislature, not by special funds with earmarked revenues 

∘  Tax Code review, particularly credits, exemptions, deductions and tax rates 

  ∘  Broaden tax base and reduce tax burden 

∘  Establish responsible budgeting caps for volatile revenues 

   

∘  Increase oversight of state expenditures     

∘  Continue improvements of the state's sunshine portal 

   

SHORT‐TERM (2011‐2013) GOALS    LONG‐TERM (5 years +) GOALS 

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GOVERNMENT RESTRUCTURING TASK FORCE 8 \

PUBLIC SCHOOLS AND HIGHER EDUCATION 

SHORT‐TERM (2011‐2013) GOALS    LONG‐TERM (5 years +) GOALS 

∘  Revise small school and small district size adjustments and other measures that reduce opportunities for "gaming" the funding formula 

  ∘  Reduce number of school districts 

∘  Moratorium on all new public and higher education schools – GRTF and LESC recommendation 

  ∘  Feasibility study and strategic plan for higher education regionalization (Carruthers report recommended beginning as a pilot) 

∘  Enhance on‐site auditing of public schools, including charter schools 

   

∘  Provide genuine transferability of credits between two‐year and four‐year colleges and universities – look to HED to enforce current statutes 

   

∘  Provide genuine articulation from secondary to post‐secondary education – look to PED and HED recommendations on remediation 

   

∘  Phase out remedial education at four‐year institutions 

   

∘  Develop plan to alleviate the need for college remedial education 

   

∘  Develop teacher performance evaluation system – LESC recommendation 

  ∘  Tie teacher performance to student growth  

∘  Improve and target teacher preparation curricula at New Mexico colleges and universities – LESC recommendation 

  ∘  Tie teacher preparation to teacher and student performance 

∘  Higher education funding formula geared to student performance; replace growth/decline "band" with three‐year rolling average; changes in square‐foot funding to eliminate incentives for building campuses; and other cost savings and efficiencies 

   

∘  Feasibility study to combine PED and HED    ∘  Have an integrated P‐20 system, with compatible data collection and performance cross‐checks 

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/ 9 FINAL REPORT / 2010

GENERAL GOVERNMENT 

SHORT‐TERM (2011‐2013) GOALS    LONG‐TERM (5 years +) GOALS 

∘  Continued consideration of core, essential services of state government ∘  Continued executive reorganization and consolidation ∘  Examination of agency workload and management and refinement for operations in time of diminished resources ∘  Continued reduction in number of boards and commissions ∘  Identification of services that local governments are better placed to offer 

  ∘  Have a state plan that "right sizes" state government, with correct and adequate staff for each agency; determine whether services need to be provided by state employees, local governments or private sector 

∘  Contract and procurement reform study    ∘  Enact a modern Procurement Code 

∘  Capital outlay reform, including study of system of true long‐range planning for state and local capital needs and centralized construction management; use of technology to reduce state capital needs; and increase use of shared office space 

  ∘  Have system in place 

∘  Improve use of online services and technology to reduce travel, staffing and physical space needs and to improve training and education for state, local and public school personnel 

  ∘  Continued improvements in the use of technology to streamline government and improve services 

∘  Further scrutiny of cost savings and efficiencies in the judicial branch, including fewer magistrate courts, better use of court resources, etc. 

  ∘  Magistrate court reform 

∘  Further scrutiny of cost savings and efficiencies in the legislative branch, including sessions, interim study and other recommendations of the legislative structure and process study task force 

  ∘  Interim committee reform, including better tie‐in to standing committees, fewer committees and shared use of permanent staffs 

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GOVERNMENT RESTRUCTURING TASK FORCE 10 \

short-term goals because work on them should begin as soon as possible.

Executive Reorganization

Executive reorganization was the primary task this interim. Like all the other restructuring

reports discussed in the history section, the proliferation of departments and agencies is of serious

concern when considered by the principles of efficiency, effectiveness, accountability and

transparency. The last reorganization, in 1977-1978,

recommended 12 cabinet departments, including the

department of agriculture1; four non-cabinet departments,

being regulation and licensing, military affairs, public

defender and game and fish; and a handful of adjunct

agencies. The state has now grown to almost double the

number of cabinet departments, with 23 cabinet departments,

the same four non-cabinet departments and about 40 adjunct

and administratively attached agencies, not counting the

departments and functions under the control of other elected

officials. Seven cabinet departments were created in the last eight years. The number of boards and

commissions has also mushroomed in the three decades since the last reorganization. This plethora of

government structures blurs the lines of authority, wastes taxpayer dollars and contravenes

accountability. Facing this organizational creep, the task force grappled with the same problems as its

predecessors in trying to trim the growth of government.

The task force found that the magnitude and complexity of reorganization/restructuring efforts

are nearly overwhelming, even for legislators and staff who are familiar with state government. The

task force had hoped to include the "before" and "after" state organizational charts in this final report,

but the 34x68-inch chart in 9-point type simply cannot be made readable in an 8 1/2x11-inch format.

Even attempts to post it on the legislative web site have not resulted in an overall readable format; one

must click on discrete areas of the chart. However, the electronic version's overall view does illustrate

the magnitude of the issue by showing the sheer number of boxes indicating the 23 cabinet

departments, with myriad advisory committees and councils attached on the left side of each

department, with institutions on the right; administratively attached agencies below the departments

and the adjunct agencies below that. Please go to www.nmlegis.gov to view the 2010 organizational

chart.

The task force recognizes that reorganization will not save a large amount of money, at least not

in the short term, but with a new administration starting, it is the best opportunity to begin streamlining

government. Between the logical consolidations of departments and the elimination of the profusion of

CURRENT 

STATE GOVERNMENT ENTITIES 

⋆  23 cabinet‐level departments 

⋆  4 non‐cabinet departments 

⋆  43 administratively attached agencies 

⋆  30 adjunct agencies 

⋆  39 professional and occupational boards 

⋆  8 instrumentalities 

⋆  128 other boards, committees and 

entities 

________ 1 The department of agriculture is a member of the cabinet but is not an executive department; it is a constitutional department under the control of the board of regents of New Mexico state university.

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/ 11 FINAL REPORT / 2010

boards and commissions, the new governor will be able to preside over a more cohesive executive

branch. The administration, and the public, will more easily know who is responsible for what. Some

changes, such as the elimination of the public education commission and the public regulation

commission (PRC), with their functions to be assigned by law, require constitutional amendments and

cannot take place until after the 2012 general election, but others can be passed by the legislature,

signed by the governor and implemented immediately. The task force acknowledges that its

reorganization recommendations are just a start, and it encourages the governor and the legislature to

continue what it has begun because even more streamlining is not only possible, but necessary, in an

era of declining resources and advancing technology.

Department and Other Agency Recommendations

The task force recommends the following major departmental changes (savings/cost reported

for fiscal year 2012 in thousands unless indicated).

⋆ Create a commerce department

— consisting of former economic development, tourism and workforce solutions departments

and the border authority. The task force originally considered including the regulation and licensing

department but was concerned about span of control issues. The governor and the legislature may wish

to revisit that option, particularly for the financial institutions, securities and construction industries

divisions, after the new commerce department has had a year or so to operate.

Net effect: eliminate two cabinet departments, one authority and several boards;

minimizes duplication and redundancy

Potential savings: approximately $2.2 million; could be more as department simplifies

its organizational structure over next couple of years

Principles: efficiency; effectiveness

⋆ Create a singular public safety department

— by merging the homeland security and emergency management department and the fire

marshal division of PRC with DPS. The homeland security and emergency management department

had been created out of several DPS functions just a few years ago, so its transition back should be

relatively smooth. The task force made clear when discussing this item that the homeland security and

emergency management department would go into DPS as a whole unit, on par with the state police

division, not split up into pieces throughout the agency. The bill also transfers oversight of the

enhanced 911 program from the local government division of DFA as a division in DPS; eliminates the

crime stoppers advisory council, the board of directors of the mounted patrol, the DNA identification

system oversight committee and the intrastate mutual aid committee; and transfers functions to the

department.

Net effect: eliminate one cabinet department and several boards and move one office

and training academy from PRC for more effective administration; minimizes

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GOVERNMENT RESTRUCTURING TASK FORCE 12 \

duplication and redundancy

Potential savings: $895.8; may be more as redundancies are reduced

Principles: efficiency; accountability

⋆ Expand the department of finance and administration

— by creating the executive services bureau to handle administrative services of small

agencies; moving state personnel into the department as a division, with a director who must meet

statutory qualifications and be confirmed by the senate; moving purchasing from GSD; and creating the

educational finance and accountability division to oversee budgets and finances of public and higher

education.

Potential cost: slight cost for executive savings bureau and expansion of office of

education accountability of $340.5

Principles: efficiency; accountability

⋆ Make the general services department a non-cabinet department

— consisting of property control, building services, transportation services, risk management

and state printing divisions. If the Health Administration and Finance Consolidation Act becomes law,

the health benefits part of the risk management division would move to the new department created in

that act.

Net effect: reduce one cabinet department to non-cabinet status

Potential savings: minimal with reduction of services for purchasing division; more

with move of risk management division to health finance and administration

department creation

Principle: efficiency

⋆ Create a health administration and finance department

— to administer and operate medical assistance programs and behavioral health services

programs, community-based waiver services and other long-term services programs; potentially

includes administration of all benefit plans for state, local and public school employees and retirees;

and establishes the health policy commission as an adjunct agency. This bill has a multiple-year phase-

in.

Net effect: increase government by one department and one adjunct agency; potential

to combine three insurance agencies; minimize duplication and redundancy

Potential savings: not calculated until fully implemented

Principles: efficiency; effectiveness; accountability; transparency

⋆ Eliminate the state game commission

— and move the department of game and fish into the energy, minerals and natural resources

department (EMNRD) as a division; combine the mining and coal surface mining commissions; and

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/ 13 FINAL REPORT / 2010

abolish the technical advisory committee to the office of interstate markets and the natural lands

protection committee.

Net effect: eliminate one non-cabinet department, two commissions and two

committees; increase cooperation between similar agencies

Potential savings: minimal

Principles: efficiency; accountability

⋆ Realign the relationship of the department of environment

— to the environmental improvement board (EIB) and the water quality control commission

(WQCC) by moving rulemaking authority to the department; transfer licensing authority under the

Medical Imaging and Radiation Therapy Health and Safety Act to the department of health (DOH); and

eliminate several boards.

Net effect: eliminate several boards; diminish the power of the EIB and WQCC

Potential savings: minimal for department of environment; increased cost of

approximately $268.0 for DOH

Principle: accountability

⋆ Combine the gaming control board and the state racing commission

Net effect: eliminate one administratively attached commission

Potential savings: $396.4

Principle: efficiency

⋆ Combine all agency hearing officers into a single state agency

Net effect: one consolidated office that provides unaffiliated hearing officers across

state agencies

Potential savings: none; fiscal impact for start-up: approx. $500.0; however, a single

agency may cost less in future as hearing officers master multiple subjects

Principles: efficiency; transparency

⋆ Amend the Executive Reorganization Act

— to require that all executive departments provide administrative and clerical services to

administratively attached agencies, thereby eliminating the need for those agencies to duplicate FTE

and efforts that can be done by the department.

Potential savings: $95.4; may cost the parent agency a minimal amount initially, but

minimizes duplication and redundancy

Principles: efficiency; accountability

⋆ Make per diem and mileage rates and rules consistent

— across all levels of government; the rate used is that paid to state employees.

Net effect: standardization

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GOVERNMENT RESTRUCTURING TASK FORCE 14 \

Potential savings: indeterminate; savings will also occur at local government levels

Principles: efficiency; accountability

⋆ Sunset

— administratively attached and adjunct agencies and boards, commissions, councils, task

forces, committees and other membership entities of the executive branch. General fund agencies are

reviewed each year during the budget process, but small agencies tend to "fall through the cracks" and

many boards and commissions do not receive any scrutiny because their costs are indirect through staff

departments. This will give the sunset review subcommittee of LFC the opportunity to evaluate the

continued efficacy of these agencies, boards and commissions.

Net effect: indeterminate

Potential savings: indeterminate

Principles: accountability; efficiency; transparency

⋆ Amend the Public School Finance Act

— to allow school districts to retain cash balances. The change will insulate some school

districts, particularly mid- to smaller-size districts, from having to request emergency supplemental

funding; will allow better fiscal planning; and provide incentives for efficiencies.

Net effect: more straightforward accounting by school districts

Potential savings: none for general fund; however, creates incentives for districts to

save money that can be reallocated for items not fully funded, such as instructional

materials adoption cycles, associated costs of opening new schools and emergencies

Principles: efficiency; effectiveness; accountability

⋆ The Organic Production Act replaces the Organic Commodity Act

— and eliminates the organic commodity commission in favor of having the organic

certification program administered by the department of agriculture.

Net effect: eliminate one state agency; reduce duplication

Potential savings: minimal as commission's appropriation has decreased dramatically

over the last two years

Principles: efficiency; effectiveness

⋆ Propose three constitutional amendments

— one to eliminate the public education commission and to take out the specifics of the

responsibilities of the secretary of public education; and one to eliminate PRC and have its duties as

provided by law. The task force believes the legislature should have the flexibility to structure the

regulation and oversight of public schools in the most efficient and effective manner possible. It held

many discussions over the efficacy of returning to the old public school finance division of DFA or to

combine public education and higher education into a single department to oversee the P-20

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/ 15 FINAL REPORT / 2010

educational system in New Mexico, but it was hampered in its recommendations by the specific

language of the constitution.

Net effect: eliminate one commission

Potential savings: not established

Principles: efficiency; accountability

— a second to eliminate PRC. This amendment has a companion bill that provides the process

for the legislature to undertake in determining how to assign regulatory duties for utilities, corporations

and the other functions of PRC. The task force is proposing this year to move the fire marshal division

to DPS, but it is the only PRC function that may be moved absent a constitutional change. Certain

taxing functions could be moved now to the taxation and revenue department, and the task force looks

forward to the revenue stabilization and tax policy committee's recommendations in this regard. As

part of its discussion of the eventual placement of other functions, the task force had particular

discussions concerning the efficacy of locating PRC's insurance division in the regulation and licensing

department, the newly proposed health finance and administration department or another structure. In

the reassignment process, the task force recommends moving the transportation functions of PRC to the

motor transportation division of DPS and reconsidering a structure along the lines of the former public

utility commission, with full-time qualified, professional commissioners appointed by the governor and

confirmed by the senate.

Net effect: not established

Potential savings: not established

Principles: efficiency; accountability; transparency

— a third to allow the legislature to overturn agency rules on a two-thirds' majority vote.

Net effect: N/A

Potential savings: N/A

Principles: accountability; transparency

⋆ Enact the Legislative Lottery Tuition Act

— which requires repayment of a lottery scholarship if the recipient does not maintain

qualifications or does not graduate within six years. The task force was concerned about the large

number of students who receive lottery scholarships but are not committed to earning a college degree;

they either lose their qualification through academic failure or drop out before completion. The act

allows up to one year after high school for a person to enroll in a college program, then pays for a

maximum of eight semesters over five academic years for a bachelor's degree and a lesser time for an

associate's degree or certificate, as determined by the department, but not more than five semesters in

three academic years. The projected trajectories of tuition increases and too many recipients crosses

lottery tuition fund revenue in 2014. If the fund continues to pay for students who are not qualified for

college-level education, those students who are committed to higher education may suffer because the

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GOVERNMENT RESTRUCTURING TASK FORCE 16 \

lottery scholarship cannot pay the full cost of tuition. This bill is an attempt to recoup fund

expenditures from those students who do not finish a degree or certificate program for which tuition

has been paid by the lottery tuition fund.

Net effect: saves the fund for committed students; recoups costs expended on students

who do not complete their college or certificate program

Principle: accountability

The task force also recommends several bills to improve government services and the public's

perception of state government as a patronage tool. These measures are explained below.

⋆ Eliminate the state personnel board's authority to exempt positions from the classified

service

— and limit the number of assistant or deputy secretaries and administrative assistants in each

department.

Net effect: closes a loophole for the proliferation of governor-exempt positions

Potential savings: unknown, but exempt positions pay more and provide better benefits

Principles: transparency; accountability

⋆ Require that actual salaries be reported in the governor's exempt salaries plan

— not just salary ranges, and include the plan in the general appropriation act.

Net effect: greater transparency in government; the legislature gets a say in salaries for

which it is required to appropriate

Potential savings: N/A

Principles: transparency; accountability

⋆ Request through a joint memorial

— that the state personnel office, in conjunction with LFC, review exempt and classified

administrative and managerial positions and the salaries provided to each classification, with a report

by September 1, 2011.

Principles: transparency; accountability; efficiency

⋆ Task force continuation

The task force recommended that its life be extended by at least one more year to continue its

work.

The task force considered significant changes to boards and commissions. The following

changes are grouped categorically pursuant to the Inventory of Statutory Executive Boards and

Commissions (a copy is on the New Mexico legislature web site at www.nmlegis.gov). Some of the

recommendations on boards and commissions are discussed in department and other agency

recommendations in this executive summary and in Chapter 5 of this report. Also see the Boards and

Commissions spreadsheet in the Appendix.

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/ 17 FINAL REPORT / 2010

Agriculture

⋆ attach the state fair commission to the commerce department;

⋆ eliminate the organic commodity commission and move its duties to the department

of agriculture; and

⋆ repeal the rangeland protection advisory committee.

Commerce and Industry

⋆ attach the apprenticeship council to the commerce department;

⋆ eliminate the border authority and move its functions to the commerce department;

⋆ remove rulemaking from the construction industries commission to the regulation and

licensing department;

⋆ merge the economic development and tourism commissions, while retaining the

requirement that separate five-year economic development and tourism plans be

developed and maintained;

⋆ repeal the governor's council on film and media industries;

⋆ attach the labor and industrial commission to the commerce department;

⋆ remove rulemaking from the manufactured housing committee to the regulation and

licensing department;

⋆ require that activities of the New Mexico-Chihuahua and New Mexico-Sonora

commissions result in no costs to the state;

⋆ eliminate the occupational health and safety review commission and move its

functions to EIB;

⋆ repeal the small business regulatory advisory commission;

⋆ attach the spaceport authority to the commerce department; and

⋆ attach the state workforce development board to the commerce department.

Cultural Affairs

⋆ change the cultural properties review committee's function to one of setting policy,

with the department staff responsible for day-to-day implementation of that policy;

⋆ repeal the film museum and its board of trustees;

⋆ repeal the Fort Stanton development commission and fund;

⋆ repeal the intertribal ceremonial board;

⋆ eliminate the Martin Luther King, Jr. commission and move its functions to the office

on African American affairs;

⋆ repeal the state library commission; and

⋆ eliminate the music commission and move its functions to the arts commission and

arts division of the cultural affairs department.

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GOVERNMENT RESTRUCTURING TASK FORCE 18 \

Education, Higher

⋆ repeal the higher education advisory board; and

⋆ repeal the public service law advisory committee.

Education, Public

⋆ repeal the family and youth resource advisory committee;

⋆ repeal the mathematics and science advisory council; and

⋆ repeal the public education commission and provide for public education to be

administered by a cabinet department with a qualified secretary as provided by law

(C.A. 2012).

Environment and Natural Resources

⋆ combine the coal surface mining and mining commissions;

⋆ remove rulemaking from EIB to the department of environment;

⋆ repeal the state game commission and make the department of game and fish a

division of EMNRD;

⋆ repeal the office of interstate natural gas markets technical advisory committee;

⋆ repeal the natural lands protection committee;

⋆ move the radiation technical advisory council from the department of environment to

DOH;

⋆ repeal the storage tank committee;

⋆ repeal the wastewater technical advisory committee; and

⋆ change membership of WQCC and remove rulemaking to the department of

environment.

General Government

⋆ repeal the alternative dispute prevention and resolution advisory council;

⋆ combine the gaming control board with the horse racing commission;

⋆ repeal the governor's residence advisory commission;

⋆ attach the personnel board to DFA;

⋆ repeal the Private Equity Investment Act and the advisory committee;

⋆ repeal the state procurement standards and specifications committee;

⋆ repeal PRC as a constitutional entity and have its functions provided by law (C.A.

2012); and

⋆ the Health Administration and Finance Consolidation Act provides for a study to

combine the retiree health care authority with other public insurers.

Health and Human Services

⋆ reduce the membership of the behavioral health planning council to no more than 20

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/ 19 FINAL REPORT / 2010

members, down from more than 40 members;

⋆ repeal the brain injury advisory council and move its functions to the developmental

disabilities planning council;

⋆ repeal the child development board;

⋆ repeal the children, youth and families advisory committee;

⋆ repeal the children's cabinet;

⋆ repeal the compulsive gambling council;

⋆ eliminate the advisory council on disability and move its functions to the aging and

long-term services department (ALTSD);

⋆ eliminate the governor's commission on disability and move its functions to ALTSD;

⋆ eliminate the various emergency medical services (EMS) boards and committees and

move their functions to the EMS bureau of DOH;

⋆ repeal the food service sanitation advisory council;

⋆ repeal the health care providers licensing and credentialing task force;

⋆ repeal the governor's HIV and AIDS policy commission;

⋆ attach the human rights commission to the commerce department;

⋆ repeal the Individual Development Account Act and its council;

⋆ repeal the medical advisory committee, which is a DOH HIV/AIDS committee;

⋆ repeal the medical direction committee, which is an internal DOH committee;

⋆ combine the medical use of cannabis board and the patient qualification review board;

⋆ repeal the next generation council;

⋆ repeal the pain management advisory council;

⋆ repeal the telehealth commission because the issue has been effectively transferred to

the health sciences center at the university of New Mexico;

⋆ repeal the trauma advisory committee, which does not have statutory membership or

duties; and

⋆ repeal the youth alliance.

Instrumentalities

⋆ repeal the New Mexico Exposition Center Authority Act;

⋆ repeal the Historic Landscape Act; and

⋆ repeal the Industrial and Agricultural Finance Authority Act.

Military Affairs

⋆ repeal the armory board council, which advises the state armory board, which

remains; and

⋆ repeal the veterans' services advisory board.

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GOVERNMENT RESTRUCTURING TASK FORCE 20 \

Public Safety and Criminal Justice

⋆ repeal the alcohol server education advisory committee;

⋆ eliminate the corrections industries commission and move its functions to the

corrections department;

⋆ repeal the crime stoppers advisory council and transfer its functions to DPS;

⋆ repeal the DNA identification system oversight committee;

⋆ repeal the domestic violence homicide review team;

⋆ repeal the domestic violence leadership commission;

⋆ move the fire protection grant council, with the fire marshal division, to DPS;

⋆ move the interoperability planning commission, with homeland security, to DPS;

⋆ eliminate the intrastate mutual aid committee and transfer its functions to the

homeland security and emergency management division of DPS;

⋆ repeal the juvenile public safety advisory board;

⋆ eliminate the mounted patrol board of directors and move its functions to DPS; and

⋆ repeal the governor's organized crime prevention commission.

Sports

⋆ eliminate the athletic commission and its medical advisory board and transfer their

functions to the regulation and licensing department;

⋆ repeal the bicycle racing commission;

⋆ combine the state racing commission with the gaming control board; and

⋆ repeal the sports advisory committee.

Transportation

⋆ eliminate the litter control council and have the commerce department assume

functions; and

⋆ repeal the traffic safety bureau advisory committee.

The savings for boards and commissions are under $1 million, but the bill eliminates obsolete

or defunct boards, eliminates redundancy, streamlines government, places responsibility and

accountability on state agencies under the control of the governor and, basically, clears the

organizational decks so the governor and the legislature can see what is actually needed to ensure the

delivery of essential state services to New Mexico citizens.

Fiscal Impact

As expected, the overall legislative package on executive reorganization does not save a lot of

money at approximately $5 million for fiscal year 2012. As reorganization settles and efficiencies are

realized, however, the task force believes additional savings will accrue. In addition, if the governor

and the legislature take the task force's recommendations for further study, particularly the review of

the tax code and state functions, savings will certainly increase. The task force is concerned about

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/ 21 FINAL REPORT / 2010

efficiencies in the public school system and believes that savings and efficiencies can be realized

through a reduction in the number of school districts or at least in the regionalization of administrative

functions; the task force hopes its study of the issues will be expanded upon in the near future. As

noted, the task force deferred to LESC for fiscal recommendations. LESC considered options that

totaled approximately $89 million in savings in public school funding, but it is not expected to

recommend all of the options reviewed, particularly those that would shorten instructional days or

change the funding formula without appropriate study. The legislature might expect recommendations

in the $23 million to $25 million range. LFC and the higher education department (HED), in

consultation with HED's funding formula task force, will also come with recommendations for

reductions in higher education. The council of university presidents testified to the task force that it

concurred with the funding formula study task force's recommendation to transition to an averaging

model for fiscal year 2012, which reduces the workload reimbursement from $61 million to $34

million, a reduction of $27 million. A 3% across-the-board cut would save an additional $23.6 million,

or, if using the fiscal year 2012 HED funding request, about $22.9 million. Each 1% increase in the

tuition revenue credit generates approximately $2.7 million that offsets general fund effort, but the

institutions are wary of such increases because of their impact on the I&G appropriations and a

potential shift of resources from core I&G functions to other line items. Tuition increases also affect

the lottery tuition fund and hasten the day of reckoning on full scholarships for New Mexico high

school graduates. The council of university presidents, the New Mexico independent community

colleges and the New Mexico association of community colleges support a complete reexamination of

the higher education funding formula.

Further Study

The task force recommends several areas of continued study regarding reorganization and just a

few are highlighted in this section; please see the short- and long-term goals table for a more

comprehensive listing. The most important step for the governor and the next several legislatures is to

watch closely those organizational changes proposed by the task force and accepted by the legislature

and governor to ensure that they are implemented in such a way as to be efficient, effective,

accountable and transparent.

State Planning

The task force recommends that the governor take seriously the executive role for policy and

planning. The Executive Planning Act specifies that its purpose is to:

achieve a coordinated and effective planning mechanism by which the

executive branch will foster implementation of a comprehensive planning

effort for the state of New Mexico through consolidation of the strategic

planning effort for the state within the office of the chief executive, and

through consolidation of the administrative aspects of state planning

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GOVERNMENT RESTRUCTURING TASK FORCE 22 \

efforts within concerned executive agencies.

The law goes further to discuss functions of the governor's office of policy and planning:

The governor's office of policy and planning shall provide overall plans

for New Mexico state government in key areas such as, but not

necessarily limited to, economic development, education, human and

natural resources and energy. These plans will define and set forth ways

to implement policies in order to achieve a cohesive direction in key

areas. To design the overall plans the governor's office of policy and

planning shall:

A. focus primarily on issue identification, formulation, analysis

and follow through in order to develop major policy statements and

implementation strategies, thereby achieving a cohesive and effective

direction for the state; [and]

B. define strategic issues where coordination of federal and state

government resources is necessary in order to effectively determine and

implement a coordinated and cohesive direction for state policy, and in

order to ensure responsive and efficient state government.

To implement the overall plans and policies, the governor's office of policy and

planning shall:

A. prepare a governor's policy manual to define the focus of the

overall state plans and policies;

B. coordinate executive implementation of the plans and policies;

C. prepare legislative proposals which would implement plans

and policies;

D. promote efficient inter-department coordination in the

implementation and administration of the plans and policies;

E. coordinate cabinet meeting to achieve a cohesive direction in

the implementation of the plans and policies. . .

I. conduct ongoing planning studies to identify and analyze

emerging planning and policy issues requiring immediate attention, and

conduct special planning and policy studies as requested by the governor.

The governor's office of policy and planning replaced the state planning office in 1983;

however, the history of that office has not necessarily been as strong as the statute suggests it could be

or as strong as the state has needed. The legislature has felt keenly the lack of systematic, systemic

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/ 23 FINAL REPORT / 2010

executive planning and, over time, has been compelled to create topic-specific boards and commissions

to carry out that function for specific areas of government service, such as the economic development

commission and the tourism commission, with their mandates to provide five-year planning for their

departments; and the myriad health and human service advisory and policy boards and commissions

attached to one or the other of the human service agencies, each with some area of planning or policy

development.

The task force recommends that the governor and the legislature consider reestablishing a state

planning agency, under the control of the governor, that will develop a systemic long-range plan for the

executive and the state. The state planning agency could assume the duties of DFA and the property

control division of GSD in developing the statutorily required four-year capital improvement plans and,

perhaps, could develop longer-range capital planning that includes significant regional and local

projects. Transportation planning, health care delivery, effects of potential demographic shifts,

economic development and work force availability and capability are all statewide concerns for which

the state should undertake statewide planning.

Judicial and Legislative Improvements

The task force did not have time this interim to look extensively at the other two branches of

government. Both are relatively small and account for very little of the state budget, with the judiciary

at approximately 4% and the legislature at less than 0.5% of the fiscal year 2011 general appropriation

act. The task force did hear from the chief justice of the supreme court on measures the judiciary has

undertaken or hopes to undertake to improve efficiency and effectiveness, but many of the initiatives

cost money and the task force was not prepared to make recommendations for increased spending.

While the legislature's funding is insignificant next to the executive, there are still efficiencies

the legislature can implement. The task force recommends that its successor consider the work of the

2006-2007 legislative structure and process study task force in developing recommendations for

improved efficiency, effectiveness, accountability and transparency for the branch.

Contracts and Procurement Reform

The task force had hoped to take up the topic of contracts and procurement reform this interim,

but again, time ran out. It recommends that the task force's successor or the executive undertake a

study of contracts and procurement that results in a modern Procurement Code and procurement

process.

Review of State Functions

The task force recommends that the legislature and the new administration take the time to

perform an in-depth study of state functions with an eye toward considering which should be

performed by the state and which could be performed better by local governments or the private sector.

The successor to the task force and the new administration will certainly have other ideas of

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GOVERNMENT RESTRUCTURING TASK FORCE 24 \

how to improve state government and the delivery of core, essential services to our citizens. All

members of the government restructuring task force stand ready to assist that endeavor in any way

possible.

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/ 25 FINAL REPORT / 2010

The last major reorganization of state government occurred under Governor Jerry Apodaca in

1977-1978. The governor proposed, and the legislature passed, legislation to streamline the executive

branch from over 390 departments, offices, agencies, boards, commissions, committees and councils to

12 cabinet departments and a handful of administratively attached or adjunct agencies. That

reorganization owed a debt to the 1952 committee for study and recommendation of reorganization of

the executive branch, state of New Mexico, popularly known as the "Little Hoover committee", whose

recommendations guided the Apodaca reorganization. It was through the actions of Little Hoover that

the department of finance and administration (DFA) was created, including the state budget division,

which is responsible for overseeing the operating budgets of all state agencies and adjusting those

budgets as necessary to ensure compliance with the balanced budget requirements of the constitution of

New Mexico.

From 124 principal executive agencies, the Little Hoover committee proposed the following

departments:

▸ agriculture (New Mexico state university (NMSU) board of regents)

▸ revenue

▸ finance and administration

▸ police and public safety

▸ justice (attorney general)

▸ personnel

▸ education

▸ highways

▸ labor

▸ commerce

▸ game and fish

▸ health and welfare.

In addition, there were several freestanding agencies such as the adjutant general, tax

CHAPTER 1 — HISTORICAL PERSPECTIVE

«»

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GOVERNMENT RESTRUCTURING TASK FORCE 26 \

commission, public utility commission, water commission and water engineer, oil conservation

commission, state library commission, museum of New Mexico and historical society and the state

penitentiary. The legislature did not take all the Little Hoover recommendations, but it did take a few

over several years: of note, DFA in 1957 and the state professionalized personnel system in 1961. One

interesting point is that Little Hoover also recommended a performance-based budget, something the

state did not move to until 1999.

The 1967 governor's committee on the reorganization of state government, created by the

legislature, was asked to recommend changes in the structure and procedures of state government.

That plan would have created 14 major departments, but only the department of corrections was ever

completely implemented. By 1975, when Governor Apodaca took office, the state's executive was still

a fragmented, unwieldy array of departments, agencies and independent boards and commissions. The

governor issued an executive order creating the cabinet form of administration, and the cabinet and its

subcabinet components were established. The governor's committee recommended 12 cabinet

departments:

▸ agricultural affairs

▸ commerce and industry

▸ criminal justice

▸ educational finance and cultural affairs

▸ energy and minerals

▸ finance and administration

▸ health and environment

▸ highway

▸ human services

▸ natural resources

▸ taxation and revenue

▸ transportation.

The Executive Reorganization Act, which laid the ground rules for the executive department

under the control of the governor, was also part of the package. All bills had a delayed effective date,

which gave the legislature the interim to consider possible changes. In the 1978 session, the legislature

made remarkably few changes, given the scope of the reorganization.

Today, the executive has once again ballooned, with a surfeit of departments, agencies, boards

and commissions. There are 23 cabinet departments, including agriculture, which is under the control

of the NMSU board of regents; two non-cabinet departments, regulation and licensing and military

affairs; two administratively attached departments, public defender and game and fish; 35 adjunct

agencies, including the state engineer's office; one state agency, the livestock board, attached to the

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/ 27 FINAL REPORT / 2010

department of agriculture; 39 licensed professions or occupations; and numerous other boards and

commissions. Faced with looming budget cuts, in late 2009, Governor Richardson appointed a

committee on government efficiency and asked that it make recommendations on efficiency measures

that could be taken to the 2010 legislative session and that would reduce government expenditures by

at least $50 million. Members of the committee were:

▸ Garrey Carruthers, chairman and former governor

▸ Dan Lopez, former secretary of finance and administration

▸ Willard Lewis, former secretary of finance and administration

▸ Chris Krahling, administrative assistant to Governor Apodaca and project

director of that reorganization

▸ David Harris, former secretary of finance and administration

▸ John Gasparich, former state budget director

▸ Katherine Miller, current secretary of finance and administration.

Carruthers Report Findings and Recommendations:

The governor's office and DFA surveyed state officials for their recommendations for cost

savings, and those responses were used to support several of the committee's recommendations, which

included the following.

1. Merge the public and higher education departments.

2. Create a commerce department by merging the economic development, tourism, workforce

solutions and regulation and licensing departments.

3. Merge the aging and long-term services and human services departments.

4. Transfer the functions of the New Mexico health policy commission to the department of

health.

5. Merge the homeland security and emergency management and public safety departments.

6. Merge the energy, minerals and natural resources and environment departments and the

natural resource trustee functions.

7. Eliminate several statutory and nonstatutory boards, commissions and task forces.

8. Consolidate several boards, commissions and councils.

The committee also made recommendations for medicaid, public schools and higher education,

as follows.

Medicaid benefits changes

1. Implement the personal care option waiver.

2. Increase state coverage insurance premiums.

3. Move to generics for some pharmaceuticals.

Public school funding

1. Remove small school and small district size adjustments and encourage the use of regional

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GOVERNMENT RESTRUCTURING TASK FORCE 28 \

educational cooperatives for overhead services.

2. Reduce the unit value for high school seniors to 1.045.

3. Defer the state educational retirement contribution for one year.

Higher education

1. Develop separate funding formulas for two-year colleges, regional universities and research

universities.

2. Transfer work force development funding from the current system to the two-year colleges

and assign them the sole responsibility for work force development programs.

3. Defer the state educational retirement contribution for one year.

The committee recognized the necessity of increasing tuition, but made no recommendation as

to an amount. The committee also recommended continued effort in "right sizing" state government to

be affordable and meet the needs of its citizens. Specific recommendations included the following.

1. Align the medicaid benefit plan more closely to private and other public plans.

2. Reduce the number of public post-secondary educational institutions.

3. Develop specific funding formulas for two-year, regional and research schools.

4. Reduce the number of school districts.

5. Further consolidate cabinet departments to increase efficiency and enhance management

and control.

6. Improve the management of state assets such as state-owned buildings.

7. Improve information technology and telecommunications and consolidate support activities.

8. Close or consolidate field offices and co-locate government offices.

9. Improve management of federal funds.

10. Modify the training and education factor in the public school funding formula.

The legislature, in a short session and faced with the daunting task of making deep cuts to the

New Mexico state budget appropriation, did not have the time or attention to pay to those

recommendations. Instead, it passed House Bill 237, which created the government restructuring task

force. The task force was charged with continuing the work of the governor's committee. To assist the

task force, the legislative council directed all interim committees to focus their work plans on

considering the efficacy of the agencies, programs and services they dealt with in their subject areas.

The guiding principles of interim review would be, as developed by the task force, efficiency,

effectiveness, accountability and transparency. The government restructuring task force took the

Carruthers recommendations under advisement and began its work on April 21, 2010.

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/ 29 FINAL REPORT / 2010

Like each reorganization study before it, the government restructuring task force took as its

mission to look at state government in terms of efficiency, effectiveness, accountability and

transparency. These are common principles used by most government studies throughout the country.

There are several points the task force kept in mind during its deliberations:

▸ New Mexico is the fifth-largest state, but ranks thirty-sixth in

population (2008);

▸ the state ranks fifth in number of residents living in poverty (2008); and

▸ New Mexico is significantly above the national and cohort average of

state employees to population, with 14.16 full-time-equivalent

employees for every 1,000 residents (FTE/1,000); the national average

is 8.31 FTE/1,000. However, its local government statistics show that

New Mexico is below average FTE/1,000 with 14.7, with the national

average of 20.93. The total of New Mexico state and local employment

is almost 1/2 FTE/1,000 below the national average for state and local

government.

The employment statistics bear out New Mexico's long-standing public policy to provide

essential services with centralized state resources rather than rely on much smaller local efforts. There

are many reasons for this position. The state's oil and gas resources are concentrated in the southeast

and northwest regions of the state, but the benefits of their severance belong to all citizens; some

formerly rich natural resource counties, principally Colfax, Taos and Grant, have seen drastic

curtailments in extraction, exacerbating population and revenue loss and the attendant rise in the

demand for government services. The state's rural agricultural character and sparse population mean

uneven tax revenues throughout the state; the concentration of urban areas, economic development and

higher education along the Rio Grande corridor highlights the unequal distribution of revenue potential.

New Mexico's large size and low population and its socioeconomic extremes point to the need for the

CHAPTER 2 — GUIDING PRINCIPLES «»

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GOVERNMENT RESTRUCTURING TASK FORCE 30 \

state to take the lead in distributing state resources statewide; however, those same issues create

problems in service administration and delivery, particularly in terms of public education, highways,

public health and state police protection.

To ameliorate the contrasts between rural and urban, the state long ago chose as a public policy

to use state-funded employment as an enduring economic development strategy throughout the state.

That strategy worked for decades, but the world is very different now and the state must rethink that

position. The government service bureaucracy has grown to an unsupportable level. The world has

shrunk, not just in terms of improved transportation, but through the incredible rise of technology. The

promise of instant communication, now realized, has changed how many services can be delivered or

improved. Beyond those improvements, though, lies the more serious problem of the state, national

and worldwide economy. Today, and for the next several years, the state will be in the midst of the

worst economic downturn since the great depression; that fact alone requires a serious reconsideration

of policies of the past and the services that a downsized government can provide. Although

streamlining is driven by current fiscal constraints, the task force encourages the governor and the

legislature to seize the opportunity to employ more and better uses of technology so that they may

continue to provide necessary services efficiently and effectively.

Following is a synopsis of the task force's efforts to improve the efficiency, cost-effectiveness,

accountability and transparency of New Mexico state government.

Efficiency

Governmental efficiency experts might look at New Mexico's diffuse executive, with its many

elected officials, and hastily conclude that efficiency is an elusive goal. The government restructuring

task force, on the other hand, believes there are numerous opportunities for efficiencies in agencies

under the control of the governor, which make up over 90% of the executive branch, as well as the

reassignment of the elected public regulation commission.

The cabinet and department structures contemplated by the Executive Reorganization Act need

to be strengthened. The proliferation of departments, other agencies, boards, commissions, councils

and committees is anathema to efficiency as well as the other guiding principles under which the task

force operated. The grouping of like functions in as few agencies as possible prevents overlapping and

duplication; prevents agencies from working at cross-purposes; increases supervision, which normally

results in better services for the same or less money; and improves public dealings with government.

The task force recommends the following major departmental changes:

▸ create a commerce department, consisting of the former economic

development, tourism and workforce solutions departments and border

authority;

▸ expand the department of finance and administration (DFA) by creating

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/ 31 FINAL REPORT / 2010

the executive services bureau to handle administrative services of small

agencies; moving state personnel into the department as a division;

moving purchasing from the general services department (GSD); and

creating the educational finance and accountability division to oversee

budgets and finances of public and higher education;

▸ make GSD a non-cabinet department consisting of the property control,

building services, transportation services, state printing and risk

management divisions;

▸ move the homeland security and emergency management department

back to the department of public safety, making it a division on par with

state police;

▸ eliminate the state game commission and move the department of game

and fish into the energy, minerals and natural resources department as a

division;

▸ combine the gaming control board and the state racing commission; and

▸ consolidate all hearing officers into one central agency to serve all

agencies.

The task force believes there are additional efficiencies to be obtained by the reduction in the

number of advocacy agencies in state government, but it did not have time to fully debate the issue. As

well, the task force recommends that the governor and legislature continue to look at consolidation of

the health and human service agencies. There are currently four major departments of state

government dealing with health and human services: the human services department, aging and long-

term services department, children, youth and families department and department of health. In

addition, there are the New Mexico health policy commission, the behavioral health planning council,

the interagency behavioral health purchasing collaborative, the office of the governor's council on

women's health, the commission on the status of women, the commission for the blind, the children's

trust fund board, the commission for deaf and hard-of-hearing persons, the developmental disabilities

planning council, the governor's commission on disability, the family infant toddler interagency

coordinating council, several state hospitals and juvenile justice institutions, to name a few.

Consolidations leading to a simple, reasonable, coherent structure for health and human services policy

and service delivery would realize benefits through each of the task force's guiding principles:

efficiency, effectiveness, accountability and transparency. The many structures currently existing for

one category of core service cannot be efficient, accountable or transparent and cannot possibly cost

less or be more effective than a coherent structure.

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GOVERNMENT RESTRUCTURING TASK FORCE 32 \

Effectiveness, Including Cost Savings

Most of the cost savings considered by the task force are realized through efficiencies garnered

by eliminating and consolidating government functions. The task force believes, however, that there

are several other avenues of exploration that the governor and legislature should consider. Several of

these are listed on the short- and long-term goals table provided in the executive summary, but the most

notable ones for cost-savings potential include:

▸ moratoria on new public and higher education schools and sites;

▸ reducing the number of school districts or regionalizing at least some

administrative functions;

▸ review of the tax code, particularly credits, exemptions and deductions

and tax rates; and

▸ increased use of technology as a method to streamline government,

improve services and provide needed training for state employees.

Accountability and Transparency

Before Florida took the nickname, and before it was known as the Land of Enchantment, New

Mexico was the Sunshine State. The two principles of accountability and transparency go hand-in-

hand to ensure that New Mexico remains the sunshine state in all but name. New Mexico laws demand

that agencies be accountable to taxpayers and the public and that they perform their functions in as

open and transparent a manner as possible. In 2010, the legislature passed the Sunshine Portal

Transparency Act with the stated goal of having a single internet web site that is free, user-friendly,

searchable and accessible to the public, known as the "sunshine portal", to host the state's financial

information for the purpose of governmental transparency and accountability to taxpayers. That web

site is under development and should be complete by July 1, 2011. At its second meeting, the task

force considered government's fiduciary responsibility and the use of best practices as important

components of good and open government.

New Mexico's Sunset Act was created in 1981 to eliminate the hodge-podge that government

had become at that point and, it was hoped, for the future. The findings section of that act provides

that:

The legislature finds that state government actions have produced a

substantial increase in numbers of programs and a proliferation of rules and

regulations and that the whole process has developed in a haphazard,

piecemeal fashion resulting in overlapping and duplication without

regulatory accountability or a system of checks and balances. The legislature

further finds that by establishing a system for periodic review of certain

separate administratively attached and adjunct agencies, it will be in a better

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/ 33 FINAL REPORT / 2010

position to evaluate the need for the continued existence of the regulatory

agencies covered by the Sunset Act.

The task force found that the state has once again reverted to the times described in that section

of law. The legislative council appointed a regulatory process subcommittee this interim, made up of

members of the revenue stabilization and tax policy committee, the economic and rural development

committee and the courts, corrections and justice committee, and some members of that subcommittee

also served on the government restructuring task force. The task force looks forward to the

subcommittee's recommendations.

After the elimination and consolidation of boards and commissions, the task force took the

added step of preparing a bill to establish sunset review for every board, commission, administratively

attached and adjunct agency in the executive branch. If it passes, every executive agency except

departments and the offices of elected officials will have their operations, effectiveness and efficacy

reviewed by the legislative finance committee at periodic intervals.

The task force urges the governor and the legislature to continue the efforts begun by the task

force this year, to continue to consider all of state government's functions in the light of these four

guiding principles.

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/ 35 FINAL REPORT / 2010

The task force began its work in April with lessons in modern New Mexico government history

by hearing testimony from Lou Baca, former chief of the school finance division of the department of

finance and administration (DFA); Chris Krahling, the project director for Governor Apodaca's

reorganization study; and Kay Marr, former secretary of finance and administration. It also heard

testimony on other states' efforts to restructure their governments during the national fiscal crisis.

In May, the task force began the interim-long consideration of two questions: "What are the

core, essential services state government must provide?" and "What big ideas should the task force

consider for restructuring government?". Staff presented the state organizational chart and the

Inventory of Statutory Executive Boards and Commissions, both published by the legislative council

service. New Mexico has what is known as a diffuse executive, meaning that control of executive

functions is in the hands of several elected officials, not just a governor2. Opponents of the diffuse-

executive style of governance argue that it dilutes the governor's ability to manage; compromises the

legislature's appropriation process; and hinders the public's access to accountable, efficient and

effective government. The task force also heard legislative finance committee (LFC) staff testimony

on a comparison of public employment statistics between New Mexico and certain other states; the

state's performance-based budgeting, which could be useful in government-wide strategic planning;

and the revenue structure of the state. After facilitated exercises, the task force developed a listing of

several avenues of inquiry in which it was interested.

The June meeting was devoted to public and higher education. The task force was given a

primer on the public school funding formula by Frances Maestas, director of the legislative eduation

study committee (LESC), before it heard from a panel of educators. The task force also heard a

presentation from Dr. Viola Florez, secretary of higher education, on the process the department was

going through to develop a higher education master plan. The department presented information on the

higher education funding formula, which is not in statute, and the DFA analyst offered policy options

________ 2The governing elected officials are: governor, secretary of state, state auditor, state treasurer, attorney general, commissioner of public lands and the public regulation commission. In addition, each of the constitutional educational institutions are controlled by a board of regents.

CHAPTER 3 — INTERIM STUDIES «»

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GOVERNMENT RESTRUCTURING TASK FORCE 36 \

to prioritize instruction particularly by looking at research

and public service projects, or RPSPs, for funding

reductions.

Please see the minutes of that meeting for those

and other recommendations from the presenters.

At its July meeting, the task force began trying to

narrow its focus. It heard from staff on proposals to

address state government restructuring and the human

services department on the medicaid program and budget.

A subgroup of task force staff analyzed the Carruthers

report recommendations on public schools and presented

them to the task force. Please see the Appendix on the K-

12 Education Staff Analyses Report.

In August, Chief Justice Charles Daniels

presented information on the structure and efficiency

measures in the judiciary. The courts have undertaken several measures to ameliorate the effects of

budget cuts, including:

▸ eliminating or delaying maintenance contracts;

▸ severely limiting in-state travel and virtually eliminating out-of-state

travel;

▸ severely limiting purchases of supplies;

▸ eliminating projects to microfilm court documents;

▸ requiring judges and attorneys to pay their own bar dues and legal

education courses and eliminating dry cleaning of robes in most courts;

▸ continuing to hold vacant positions;

▸ reducing most drug courts and other problem-solving courts;

▸ laying off domestic violence hearing officers and drug court employees;

▸ eliminating the domestic violence family assessment and intervention

resources program in Albuquerque;

▸ reducing services for court-appointed special advocates, safe exchanges

and supervised visits and medication in abuse and neglect cases;

▸ retaining mileage at $.32 instead of the internal revenue service rate;

▸ charging statutorily authorized fees to problem-solving court clients;

▸ reducing court hours for the public;

▸ reducing phone and fax lines in courts;

1 8

10

11 4

9

5 12

3

7

6

13 2

New Mexico Judicial Districts

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/ 37 FINAL REPORT / 2010

▸ eliminating pro tempore magistrate judges and requiring elected

magistrates to travel to other courts;

▸ restructuring jury orientation processes and reducing jury pay and

travel;

▸ holding magistrate court vacancies open unless court is staffed below

80% of staffing need and holding all magistrate court vacancies open at

least 120 days;

▸ negotiating with magistrate court landlords to forego annual lease

increases and in some cases reducing lease payments; eliminating

Tatum, Vaughn, Cimarron and San Jon courts;

▸ increasing fees for court automation and magistrate court operations,

judicial education and jurors' pay; and

▸ by supreme court order, increasing jury demand fees for litigants by

50%.

There are other efficiencies the judiciary has or will implement that will save money in the long

run, including implementing the Odyssey case management system in all state courts; implementing

electronic payments by credit card and direct bank

transfer; expanding the judicial video system to improve

court operations; and other efficiency measures such as a

plea cutoff pilot project, restructuring penalty assessments,

reevaluating the trial de novo process, studying the judicial

structure, coordinating public regulation commission

bondsmen data with court filings, reexamining bond

practices, implementing criminal felony case settlement

weeks, appointing pro tempore judges to resolve probation

violations, expanding digital recordings, preserving

problem-solving courts, suspending or eliminating

magistrate circuit courts and holding quarterly warrant

amnesty programs. Some propositions, such as

implementing the Odyssey case management system, will

require one-time funding. The administrative office of the

courts estimated that $5 million more a year could be

collected through the use of credit card and direct bank transfers. Greater use of video for meetings

and training could save about $170,000 in travel and lost productivity costs.

Also at the August meeting, Raúl E. Burciaga, director of the legislative council service,

New Mexico Magistrate Courts and Magistrate Circuit Courts

Farmington 

Taos 

Springer 

Questa 

Chama Aztec  Raton 

Clayton 

Cuba 

Los Alamos  Española 

Pojoaque 

Santa Fe Las Vegas 

Roy 

Tucumcari 

Santa Rosa 

Clovis Fort Sumner 

Portales 

Roswell 

Carrizozo 

Ruidoso 

Artesia Alamogordo 

Carlsbad 

Tatum 

Lovington 

Hobbs 

Eunice 

Jal 

Anthony 

Las Cruces 

Hatch 

Deming Lordsburg 

Bayard Silver City 

Truth or Consequences 

Reserve 

Quemado  Socorro 

Grants Thoreau 

Gallup  Bernalillo 

Moriarty 

Estancia Belen 

Los Lunas 

Mora 

Magistrate Courts Magistrate Circuit Courts 

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GOVERNMENT RESTRUCTURING TASK FORCE 38 \

reported on the recommendations made by the 2006-2007 legislative structure and process study task

force. Following is a selection of the recommendations that are relative to the task force's guiding

principles of efficiency, effectiveness, accountability and transparency (please see the August minutes

for the complete list of recommendations and their commentary):

▸ shorten the bill introduction period by one-third;

▸ prohibit memorials that request state agencies to take actions;

▸ establish deadlines for legislation to pass in the house of origin;

▸ establish a deadline to introduce memorials;

▸ limit the number of bills and memorials introduced;

▸ ensure that committee hearings convene as scheduled; and

▸ reconfigure the interim committee structure by limiting the number of

interim committees to 12, reducing the number of advisory members

appointed to interim committees, coordinating staffing needs among the

permanent staffs, respecting the different sizes of the houses and

increasing the number of days members may be reimbursed for

attending meetings of committees to which they are not appointed.

There were several recommendations the legislative structure and process study task force made

that have already been accomplished, of particular note were the opening of conference committees to

the public; use of technology to make the legislative process more accessible to the public; and

providing more public parking near the capitol. Now, both house and senate floor sessions are

audiocast and videocast; and all interim and certain standing committee sessions are audiocast. The

new parking garage across the street from the capitol is open to the public and state employees.

The task force also heard staff reports on restructuring ideas and health and human services

issues and began to look at bill drafts.

The September meeting again dealt with health and human services issues as the task force was

expecting recommendations from the legislative health and human services committee. The task force

considered several options and requested bill drafts on consolidation of medicaid waiver programs and

reorganizing the health care financing and administration functions into a single department. Staff laid

out various options for restructuring several departments of state government. The task force also

heard an update on general fund revenues.

In October, the task force heard an update on the higher education department's development of

its first master plan, which was still in the process stage, and a second presentation on the higher

education funding formula. Also in October, the task force's boards and commissions subcommittee

made its report to the task force. The subcommittee recommended the elimination of numerous boards

and commissions. The task force requested that LFC and DFA provide fiscal impacts on the

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/ 39 FINAL REPORT / 2010

subcommittee's recommendations and to provide additional recommendations as those staffs saw fit.

LESC staff reported on its analysis of the proposed small school and small district size adjustment

changes to the public school funding formula. Staff continued providing bill drafts for the task force's

consideration.

There were two meetings in November. At the November 11 meeting, Senator Cynthia Nava,

chairwoman, and Representative Rick Miera, vice chairman, both of LESC, provided the task force

with several proposals related to public schools. The proposals had not been endorsed by the

committee but were items the committee considered at a special meeting held for the purpose of

developing recommendations for the government restructuring task force. In regards to earlier task

force proposals, LESC proposed the following alternatives to several of the items.

▸ Instead of changing the small school and small district size adjustments

in the formula, LESC recommends two changes: (1) eliminating small

school size units for schools claiming more than one school in the same

facility; and (2) capping size adjustment and growth units. LESC staff

is still working on potential savings for item (1) and thinks item (2)

would save approximately $2.6 million.

▸ Instead of striking constitutional language that gives the secretary of

public education the responsibility to distribute and account for public

school funds, LESC proposes that the public education department

(PED) budget be separated into program and finance functions like all

other departments. Senator Nava pointed out that a constitutional

amendment would not go to the voters until 2012, and there is still time

to consider the task force ideas pertaining to the public education

commission and the secretary's duties.

▸ Instead of moving financial oversight for school districts from PED to

DFA, LESC proposes to transfer PED's office of inspector general to

the state auditor to oversee both public and higher education. Again,

the move would take a constitutional amendment, and the legislature

has time to consider the best organization to ensure efficiency and

accountability.

▸ The idea to merge PED and the higher education department into a

single department may have merit in strengthening the pre-K-20

continuum and should be investigated further.

The potential cost-savings measures were presented not as LESC recommendations, but as

information only. Please see the November 11 minutes for the list and estimated cost savings. The

task force agreed to wait for LESC final decisions before making its own recommendations.

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GOVERNMENT RESTRUCTURING TASK FORCE 40 \

Also at the November 11 meeting, the task force heard the staff report on higher education

funding issues that had been presented to LFC. Pertinent parts of that report included the following:

▸ the higher education funding formula is not aligned with state policies;

▸ factors built into the formula when revenues were increasing are

causing inequities now that revenue is dropping;

▸ fairness and equity concerns about the formula have been raised but not

addressed;

▸ the formula funds inputs, using band adjustments, and ignores

outcomes;

▸ the formula fully funds enrollment without considering the marginal

cost of educating additional students;

▸ the formula has too many cost variables that take up significant time to

collect data and calculate to distribute relatively little money;

▸ the tuition credit percentage is applied to institutions with very different

costs of tuition, which causes a long-term shift in the percentage of

general fund appropriations that go to different institutions;

▸ unlike the four-year institutions, two-year institutions have mill levies

that may be used to offset the effect of tuition credits;

▸ many students graduate with more credit hours than necessary, for

which the state pays;

▸ to increase enrollment, and therefore funding, institutions are expanding

the number and scope of programs irrespective of service area or

mission; for example, New Mexico state university (NMSU) and New

Mexico highlands university offer the same social work degree program

in Albuquerque in buildings located next to each other;

▸ NMSU offers public health and education courses in Albuquerque in

competition with the university of New Mexico;

▸ Dona Ana community college has eight facilities in Dona Ana county;

▸ Santa Fe community college is building an education center for four-

year institutions to offer courses but will keep the square footage

funding;

▸ the state is paying for distance education enrollment for out-of-state

and, in some instances, out-of-country students; and

▸ there are 14 tuition waivers that cost the general fund about $60 million

annually, with another $10 million in waivers coming online in the next

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/ 41 FINAL REPORT / 2010

couple of years.

At the November 22-23 meeting, staff reported on the results of the public employee survey

that had been conducted through the legislative web site, which is discussed further in Chapter 6 of this

report. Staff also reported on the differences between the boards and commissions recommendations

and recommendations of LFC and DFA staff, and the task force took action on some items and asked

for further analysis on others. Representatives of the four-year and two-year schools presented

recommendations to the task force, the most notable being that if the higher education budget were to

be decreased, they recommended across-the-board cuts as preferable to making changes to the funding

formula. Staff continued to report on bill drafts.

December 20 was the task force's final meeting during which it made its final decisions. Please

see the executive summary, other chapters and the appendices for the details of those decisions.

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/ 43 FINAL REPORT / 2010

Commerce Department

The new commerce department consists of those functions of state government that are

business-related or concerned with the economic development of the state. It combines the economic

development, tourism and workforce solutions departments and the border authority, and

administratively attaches the apprenticeship council, the economic development and tourism

commissions, the human rights commission, the labor and industrial commission, the New Mexico-

Chihuahua and New Mexico-Sonora commissions, the spaceport authority, the state fair commission,

the state workforce development board and workers' compensation administration. The task force

originally proposed to include the regulation and licensing department, but was concerned about span-

of-control issues attributable to a "super" commerce department. It also considered other

configurations, one that would have combined tourism, state parks and cultural affairs and another that

would have combined state monuments

and state parks. Upon further scrutiny,

however, the task force rejected the other

options as incompatible mandates. The

mission of the cultural affairs department,

including state monuments, is preservation

and education and the stewardship of New Mexico's cultural heritage. The tourism department's

mission is to foster state and local economic development by encouraging travelers to come to New

Mexico and by developing the necessary tourism infrastructure throughout the state. The mission of

the state parks division of the energy, minerals and natural resources department (EMNRD) is

recreation and preservation of New Mexico's natural environment. Certainly, all of these agencies do

generate tourism and economic development and there are synergies such as branding, joint marketing

and event programming that can and should be implemented, but not as a combined department.

“Everybody is somebody in New Mexico." ‐ official state slogan for business, commerce and industry 

CHAPTER 4 — DEPARTMENT ORGANIZATIONAL CHARTS «»

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GOVERNMENT RESTRUCTURING TASK FORCE 44 \

After this beginning reorganization effort has had a chance to settle in, the task force

recommends the governor and the legislature consider adding some of the business-related functions of

the regulation and licensing department to the commerce department. It also recommends that the

governor consider and make recommendations to the fiftieth legislature, second session, to simplify the

department's internal structure. The task force eliminated only a few programs in the current economic

development and tourism departments, but it does believe there are several more that may not be

needed any longer or that may need to be configured differently.

Department of Finance and Administration and General Services Department

The department of finance and administration (DFA) is the state's fiscal management agency

and is primarily responsible for:

(1) planning for revenues and expenditures of state money, including development

of the governor's budget recommendations to the legislature;

(2) establishing the state's accounting and reporting systems;

COMMERCE DEPARTMENT

Office of the Secretary

Administrative Services Division

IT Bureau Economic Research &Analysis Bureau

AdministrativelyAttached

Economic Development and  Tourism CommissionHuman Rights CommissionLabor and Industrial CommissionNew Mexico‐Chihuahua CommissionNew Mexico‐Sonora CommissionSpaceport AuthorityState Fair CommissionWorkers' Compensation AdministrationState Workforce Development Board

Economic Development Division

Human RightsBureau

Labor Relations Division Tourism Division

InternationalTrade

Bureau

Work Force Transition Services

Division

MarketingBureau

NMFilm

EnterpriseDevelopment

Bureau

ApprenticeshipBureau

Labor andIndustrial

Bureau

New Mexico

MagazineBureau

WelcomeCenters Bureau

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/ 45 FINAL REPORT / 2010

(3) overseeing the day-to-day expenditures of money by:

(a) seeing that vouchers and claims are valid;

(b) seeing that there is sufficient money left in an appropriation to make

payment; and

(c) issuing payment warrants;

(4) approving state contracts;

(5) approving local government budgets and managing state-funding for local

capital projects; and

(6) monitoring all capital outlay projects from severance tax bonds, general

obligation bonds, general fund and other funds.

When the Little Hoover committee proposed the creation of DFA, it presented a lengthy

account of the state's violations of the principles of financial management. The legislature heeded the

committee's advice and created the department, which also was then responsible for state purchasing

and property control. In 1983, the legislature created the general services department (GSD) to include

purchasing, property control, risk management and state motor pool.

After study, the task force recommends moving the purchasing division back to DFA and

making GSD a non-cabinet department responsible for property control, building services for buildings

in the capital, transportation services, state printing and risk management.

DEPARTMENT OF FINANCE AND ADMINISTRATION

Office of the Secretary

Administrative Services Division

ExecutiveServicesBureau

Capital Outlay Planningand

Monitoring Bureau

AdministrativelyAttached

Acequia CommissionState Board of FinancePersonnel BoardNew Mexico Community

Development CouncilCivil Legal Services

CommissionLand Grant Council

Educational Finance andAccountability Division

Financial Control Division

Local GovernmentDivision

PurchasingDivision

Board ofFinance

State PersonnelDivision

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GOVERNMENT RESTRUCTURING TASK FORCE 46 \

Department of Public Safety

In 2007, after two other attempts, the governor recommended and the legislature passed

legislation to extract parts of the department of public safety (DPS) to create the homeland security and

emergency management department as a new cabinet-level department. After due consideration, the

task force determined that a singular department responsible for all levels of public safety, including

homeland security and emergency management functions, would serve the public better and be more

cost-effective. The task force proposes to make homeland security and emergency management a

division of DPS, with the same powers and duties it had as a department. The governor may, by

appropriate order, name either the division or the department as the single state agency for the

administration of any homeland security or emergency management program when the designation is

required by federal law or rule or is a condition of federal funding. In addition, the task force's

endorsed legislation creates a fire marshal division and moves that office and the firefighter's training

academy from the public regulation commission. The enhanced 911 division is created to administer

the state's enhanced 911 service program.

DEPARTMENT OF PUBLIC SAFETY

Office of the Secretary

Administrative Services Division

BudgetBureau

FinancialManagement

Bureau

Special Investigations

Division

Trainingand

RecruitingDivision

TechnicalSupport

Division

Motor Transportation

Division

PersonnelBureau

GeneralServices Bureau

Planning/Contracts/

SupplyBureau

InformationTechnology

Division

ApplicationSupport Bureau

Technology and Server

Support Bureau

New Mexico

State PoliceDivision

HomelandSecurity andEmergency

ManagementDivision

Fire MarshalDivision

Enhanced911

Division

Administratively Attached

Public Safety AdvisoryCommission

Search and Rescue ReviewBoard

Interoperability PlanningCommission

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/ 47 FINAL REPORT / 2010

Energy, Minerals and Natural Resources Department

In the 1977 reorganization, Governor Apodaca proposed a natural resources department that

would be charged with the management of renewable resources such as water, wildlife and forests; the

department would have a wildlife division that would be responsible for administering programs in

game and fish management, protecting endangered species, registering snowmobiles and promoting

public education of the state's wildlife resources among other duties. The 1978 changes, however,

reverted to administratively attaching the state game commission and department of game and fish to

the newly created natural resources department. In 1987, the legislature again reorganized and

combined the energy and minerals department with the natural resources department, with the state

game commission and the department of game and fish administratively attached to EMNRD. The task

force proposes to eliminate the state game commission and make the department of game and fish a

division of EMNRD. It is a logical fit with the state parks and forestry divisions of the current

EMNRD.

ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT

Office of the Secretary

AdministrativelyAttached

Youth Conservation CorpsOff-Highway Motor Vehicle

Advisory BoardState Parks Advisory BoardMining CommissionTree Planting Advisory

CommitteeFire Planning Task Force

AdministrativeServices Division

State Parks

Division

OilConservation

Division

Game andFish

Division

EnergyConservation

andManagement

Division

ForestryDivision

Mining andMineralsDivision

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1977 — 13 departments

1978 — 14 departments

1981 — 14 departments

1979 — 15 departments

1983 — 16 departments

1987 — 17 departments

1991 — 19 departments

1992 — 20 departments

2004 — 24 departments

2005 — 25 departments

2007 — 27 departments

New Mexico State Government Departments

1977-2010

note: Figures include non-cabinet level departments (Department of Game and Fish, Public Defender Department, Regulation and Licensing Department and Department of Military Affairs)

2010 GRTF PROPOSAL — 24 departments

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/ 49 FINAL REPORT / 2010

The task force had several conversations

about boards and commissions and appointed a

subcommittee to look at the legislative council

service's publication, Inventory to Statutory Boards

and Commissions, to consider the efficacy of each

board or commission.

Over four meetings, the following questions

guided the subcommittee's deliberations when

considering the boards and commissions:

⋆  Does it serve a legitimate state function?

⋆  Can or should a state agency perform the functions, particularly rulemaking?

⋆  Does it function efficiently?

⋆  Is it redundant?

In cases where the subcommittee recommended merger or elimination in favor of a department

with similar purpose or services, the recommendation included the transfer of functions of that board or

commission to the department. Efficiency and accountability were the subcommittee's goal; cost

savings was not expected to be a significant contributor, and it was not, at approximately $1.3 million.

However, by uncluttering the executive branch, both the governor and the legislature will have a better

chance to consider what important and critical services of state government need structures additional

to agencies or advice in a form that could not otherwise be provided through normal channels. The

task force and the subcommittee struggled with the governmental/philosophical question of whether

rulemaking should be a function of an agency directly answerable to the governor or a board made up

of citizens who are only indirectly answerable.

After the subcommittee reported, the task force requested the legislative finance committee

(LFC) and the department of finance and administration (DFA) to cost out the recommendations and

BOARDS AND COMMISSIONS SUBCOMMITTEE 

MEMBERSHIP 

legislative and public members 

Michelle Lujan Grisham, Chairwoman Sen. Tim Eichenberg, Task Force Chairman Rep. Paul C. Bandy John Gasparich Sen. Steven P. Neville Rep. Jeannette O. Wallace 

 staff ‐ Jonelle Maison 

CHAPTER 5 — BOARDS, COMMISSIONS AND STUDIES «»

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GOVERNMENT RESTRUCTURING TASK FORCE 50 \

asked them and the legislative council service to provide additional analyses. The task force heard

more public comment over the potential elimination or merger of boards and commissions than any

other topic. As expected, advocates organized and put forth concerted pressure to save their particular

board or commission.

Subcommittee staff presented the differences between the subcommittee and LFC

recommendations and the task force made the following recommendations. They are grouped

categorically pursuant to the Inventory of Statutory Executive Boards and Commissions (available at

www.nmlegis.gov).

Agriculture

⋆ attach the state fair commission to the commerce department;

⋆ eliminate the organic commodity commission and move its duties to the department

of agriculture; and

⋆ repeal the rangeland protection advisory committee.

Commerce and Industry

⋆ attach the apprenticeship council to the commerce department;

⋆ eliminate the border authority and move its functions to the commerce department;

⋆ remove rulemaking from the construction industries commission to the regulation and

licensing department;

⋆ merge the economic development and tourism commissions, while retaining the

requirement that separate five-year economic development and tourism plans be

developed and maintained;

⋆ repeal the governor's council on film and media industries;

⋆ attach the labor and industrial commission to the commerce department;

⋆ remove rulemaking from the manufactured housing committee to the regulation and

licensing department;

⋆ require that activities of the New Mexico-Chihuahua and New Mexico-Sonora

commissions result in no costs to the state;

⋆ eliminate the occupational health and safety review commission and move its

functions to the environmental improvement board;

⋆ repeal the small business regulatory advisory commission;

⋆ attach the spaceport authority to the commerce department; and

⋆ attach the state workforce development board to the commerce department.

Cultural Affairs

⋆ change the cultural properties review committee's function to one of setting policy,

with the department staff responsible for day-to-day implementation of that policy;

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/ 51 FINAL REPORT / 2010

⋆ repeal the film museum and its board of trustees;

⋆ repeal the Fort Stanton development commission and fund;

⋆ repeal the intertribal ceremonial board;

⋆ eliminate the Martin Luther King, Jr. commission and move its functions to the office

on African American affairs;

⋆ repeal the state library commission; and

⋆ eliminate the music commission and move its functions to the arts commission and

arts division of the cultural affairs department.

Education, Higher

⋆ repeal the higher education advisory board; and

⋆ repeal the public service law advisory committee.

Education, Public

⋆ repeal the family and youth resource advisory committee;

⋆ repeal the mathematics and science advisory council; and

⋆ repeal the public education commission and provide for public education to be

administered by a cabinet department with a qualified secretary as provided by law

(C.A. 2012).

Environment and Natural Resources

⋆ combine the coal surface mining and mining commissions;

⋆ remove rulemaking from the environmental improvement board to the department of

environment;

⋆ repeal the state game commission and make the department of game and fish a

division of the energy, minerals and natural resources department;

⋆ repeal the office of interstate natural gas markets technical advisory committee;

⋆ repeal the natural lands protection committee;

⋆ move the radiation technical advisory council from the department of environment to

the department of health (DOH);

⋆ repeal the storage tank committee;

⋆ repeal the wastewater technical advisory committee; and

⋆ change membership of the water quality control commission and remove rulemaking

to the department of environment.

General Government

⋆ repeal the alternative dispute prevention and resolution advisory council;

⋆ combine the gaming control board with the horse racing commission;

⋆ repeal the governor's residence advisory commission;

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GOVERNMENT RESTRUCTURING TASK FORCE 52 \

⋆ attach the personnel board to DFA;

⋆ repeal the Private Equity Investment Act and the advisory committee;

⋆ repeal the state procurement standards and specifications committee;

⋆ repeal the public regulation commission as a constitutional entity and have its

functions provided by law (C.A. 2012); and

⋆ conduct the study provided for in the Health Administration and Finance

Consolidation Act to combine the retiree health care authority with other public

insurers.

Health and Human Services

⋆ reduce the membership of the behavioral health planning council to no more than 20

members, down from more than 40 members;

⋆ repeal the brain injury advisory council and move its functions to the developmental

disabilities planning council;

⋆ repeal the child development board;

⋆ repeal the children, youth and families advisory committee;

⋆ repeal the children's cabinet;

⋆ repeal the compulsive gambling council;

⋆ eliminate the advisory council on disability and move its functions to the aging and

long-term services department (ALTSD);

⋆ eliminate the governor's commission on disability and move its functions to ALTSD;

⋆ eliminate the various emergency medical services (EMS) boards and committees and

move their functions to the EMS bureau of DOH;

⋆ repeal the food service sanitation advisory council;

⋆ repeal the health care providers licensing and credentialing task force;

⋆ repeal the governor's HIV and AIDS policy commission;

⋆ attach the human rights commission to the commerce department;

⋆ repeal the Individual Development Account Act and its council;

⋆ repeal the medical advisory committee, which is a DOH HIV/AIDS committee;

⋆ repeal the medical direction committee, which is an internal DOH committee;

⋆ combine the medical use of cannabis board and the patient qualification review board;

⋆ repeal the next generation council;

⋆ repeal the pain management advisory council;

⋆ repeal the telehealth commission because the issue has been effectively transferred to

the health sciences center at the university of New Mexico;

⋆ repeal the trauma advisory committee, which does not have statutory membership or

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/ 53 FINAL REPORT / 2010

duties; and

⋆ repeal the youth alliance.

Instrumentalities

⋆ repeal the New Mexico Exposition Center Authority Act, the Historic Landscape Act

and the Industrial and Agricultural Finance Authority Act.

Military Affairs

⋆ repeal the armory board council, which advises the state armory board, which

remains; and

⋆ repeal the veterans' services advisory board.

Public Safety and Criminal Justice

⋆ repeal the alcohol server education advisory committee;

⋆ eliminate the corrections industries commission and move its functions to the

corrections department;

⋆ repeal the crime stoppers advisory council and move its functions to the department

of public safety (DPS);

⋆ repeal the DNA identification system oversight committee;

⋆ repeal the domestic violence homicide review team;

⋆ repeal the domestic violence leadership commission;

⋆ move the fire protection grant council, with the fire marshal division, to DPS;

⋆ move the interoperability planning commission, with homeland security, to DPS;

⋆ eliminate the intrastate mutual aid committee and transfer its functions to the

homeland security and emergency management division of DPS;

⋆ repeal the juvenile public safety advisory board;

⋆ eliminate the mounted patrol board of directors and move its function to DPS; and

⋆ repeal the governor's organized crime prevention commission.

Sports

⋆ eliminate the athletic commission and its medical advisory board and transfer their

functions to the regulation and licensing department;

⋆ repeal the bicycle racing commission;

⋆ combine the state racing commission with the gaming control board; and

⋆ repeal the sports advisory committee.

Transportation

⋆ eliminate the litter control council and have the commerce department assume

functions; and

⋆ repeal the traffic safety bureau advisory committee.

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/ 55 FINAL REPORT / 2010

The task force requested that surveys be conducted among public employees and the general

public to solicit suggestions for making state government more effective and efficient. Legislative

council service staff developed two separate surveys through Survey Monkey and posted links to them

on the legislature's web site, where the surveys remained active and available for response from mid-

September through the end of October. Staff sent an email notice to all legislative and judicial

employees inviting them to fill out the employee survey. Executive branch employees, however, could

not be notified via email without approval from the governor, who declined to authorize the emails.

The legislative council service issued press releases for newspaper and radio to announce the surveys to

both executive branch employees and the general public. As a result of email notices, press releases

and links posted on

the legislature's web

site, 968 public

employees responded

to the employee

survey and 254

members of the

general public responded to the public survey.

Because of the relatively low response to the general public survey, the task force focused its

attention on the results of the public employee survey. This survey included 22 questions covering

broad topics such as communications, tools to do the job better, workplace ratings, possible savings or

efficiencies, obstacles to effectiveness and possible restructuring. About half of the questions were

multiple choice and the rest open-ended, giving respondents an opportunity to cite examples and offer

suggestions.

Employees from more than 40 state agencies responded to the survey. About two-thirds of the

responses came from non-supervisory employees and about half from employees who have worked for

“Listen to what the worker bees have to say.   Those of us who are 

doing the work know what we need and don't need.  

Administration has no idea what really goes on." ‐ public employee 

CHAPTER 6 — PUBLIC EMPLOYEE AND GENERAL PUBLIC SURVEYS AND COMMENTS «»

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GOVERNMENT RESTRUCTURING TASK FORCE 56 \

the state for 10 years or less. When asked

whether they plan to leave state government in

the next three years, 29% said yes, with

retirement accounting for only 57% of those

responses. The primary reason given by the

remaining respondents — those who plan to

pursue work outside of state government in the

near future — was low pay.

Respondents cited three critical needs

within their agencies: better technology, better

training and more decision-making authority on

the front lines. When rating their workplaces,

respondents cited workload overload as a major

problem even while feeling their agencies

manage to serve the public well.

When prompted for examples of how their agencies might save money on certain expenses,

travel garnered the most responses at 55%. Suggestions for saving money in this category ranged from

limiting use of state vehicles to teleconferencing to better coordination and communication in order to

avoid wasted travel. The second-highest number of responses concerned staffing; many respondents

stated that their agencies are too "top-heavy" and suggested reducing management positions,

eliminating political hires and realigning staffing to place more workers on the front lines.

When asked about energy and water use in state

facilities, inefficient heating, cooling, lighting and

electricity received the most responses, with the

dominant themes being energy-wasting facilities and a

need for energy-use monitoring, renewable energy

systems and water conservation.

Low employee morale and not enough staff

were cited as the greatest stumbling blocks to agency

and employee effectiveness. Many responses

intertwined the two topics, with descriptions of low

employee morale that comes from increased workload

due to staff shortages and that is exacerbated by the

presence of underqualified and underperforming

political hires.

 

0 50 100 150 200

barebones already

doing okay

resources

budget

information

transportation

audits/investigations

consolidate ‐ NO

facilities

communication

cooperation

process/paperwork

IT

management/planning

restructure

training

pay

purview

general

consolidate ‐ YES

work environment

staffing/work load

QUESTION19If I were in charge of restructuring my agency/department, 

the most important thing I would do is:

WHO RESPONDED?  968 public employees from more than 40 state agencies              66%  non‐supervisory employees 23%  management employees (classified) 11%  management employees (appointed or exempt) 

How long have you been a  state of New Mexico employee? 

0%20%

40%

Less than a year

1‐5 years

6‐10 years

11‐15 years

16‐20 years

Over 20 years

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/ 57 FINAL REPORT / 2010

Respondents cited top-heavy and incompetent

management as a major waste of time and resources,

followed closely by process problems and too much

paperwork. High turnover and the resulting need for

constant training of new employees was also cited as

an ongoing waste.

If given the opportunity to restructure their

agencies to improve efficiency and effectiveness,

nearly 75% of the respondents said they would address

staffing and workload issues. Dominant themes in

these responses included employee retention; staffing

adjustment to provide more support staff and reduce

management positions; encouraging transparency

without fear; and consolidation to reduce duplication of

efforts and combine bureaus with similar objectives.

When asked where their agencies could

consolidate, many respondents generally agreed that

consolidation could happen, though few offered

concrete suggestions. As was noted on many

questions, a great deal of frustration lies with governor-

exempt employees and other political hires.

Comments on top-heavy staffing and process

improvements were also prevalent, acknowledging a

growing bureaucracy. Facilities duplication was

mentioned with the suggestion that certain duplicate

offices be eliminated to reduce floor space and rent

costs.

While some respondents felt that the state

would see savings by centralizing certain services —

for example, housing all agency general counsels under

the attorney general — others felt strongly that

decentralization of certain services would increase

efficiency — for example, eliminating the department

of information technology and returning all such

functions to the agency level. Some also felt that

COST‐REDUCTION SUGGESTIONS  

FROM THE  

PUBLIC EMPLOYEE SURVEY 

 

“Move state agencies that are paying rent into 

GSD‐owned buildings since there are a lot of 

vacancies which cannot be filled, thus, a lot of 

empty spaces.”  

 

“Retain employees.  Our training costs would 

put a private sector business out of business.”  

 

“Hire staff rather than contractors ‐ especially 

out‐of‐state contractors.  Let's give some of this 

work to New Mexico residents.” 

 

“Get rid of political hires and ‘made for’ 

positions.”    

 

"Eliminate the Department of Information 

Technology and return all IT functions to the 

agency level."  

 

“Require that all state employees who drive 

state cars between Albuquerque and Santa Fe 

on state time use the Rail Runner instead.” 

 

“I believe there are too many higher education 

institutions and branch campuses.  As a result, 

scarce resources are spread too thin and we do 

not achieve excellence in any field.” 

 

“Eliminate all the duplicate offices that many 

employees have ‐ two of everything ‐ this would 

help to reduce the excessive floor space that is 

being leased and reduce the agency rent 

budget.”   

 

"Any government that wishes to impress its 

citizens with how well government is run needs 

to start with the motor vehicle department and 

the schools ‐ the entities that touch more lives 

than any other." 

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GOVERNMENT RESTRUCTURING TASK FORCE 58 \

refocusing services would result in savings, citing a shift from treatment services to prevention services

as an example.

In general, respondents appreciated the opportunity to participate in the survey and to have their

frustrations and suggestions heard. Many said they hope to have the opportunity again, preferably on a

regular or ongoing basis. Many also said they are concerned about the task force's final

recommendations and how their jobs and agencies might be affected.

In addition to the surveys, the task force's web page included a comments page where anyone

could post suggestions for government restructuring as well as comments on the task force's work.

Two questions were posed on this page to guide commentary:

  ⋆  What are the essential services the state must deliver?

  ⋆  What is the most effective way to accomplish the state's goals with the funds available?

By the end of the interim, 159 people had posted comments on this page. In response to the

first question, nearly half said that the state must not cut public assistance programs, citing programs

that range from health care to civil legal services. As for how the state might continue to provide these

essential services with the funds available, the two most common suggestions were to repeal the 2003

tax cuts, or otherwise increase taxes, for the wealthy; and impose the corporate income tax on out-of-

state corporations doing business in New Mexico.

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/ 59 FINAL REPORT / 2010

Sixty percent of the state's general fund budget is for education, including public schools and

higher education. In fiscal year 2011, public education received 45% of the general fund appropriation

in the General Appropriation Act of 2010. Understandably, the task force spent a great deal of time

looking at these two important areas of state funding. Following is an abstract of information received

by the task force and its considerations.

Public Schools

History

Until 1891, there was no public schooling in New Mexico; whatever schooling was available

was provided mainly by the Catholic church and other denominational schools. Governor Bradford

Prince and the territorial legislature created a system of public education and the first territorial

superintendent was appointed in 1891 and the first territorial board of education came into existence.

When New Mexico became a state in 1912, the constitutionally created state board of education took

over responsibility for public education, though it was limited to teacher certification and curriculum

standards; school finances were handled by another agency. The first codification of a School Code

occurred in 1923.

By 1950, the duties of the state board of education had been enlarged to include making rules

for the governing of schools; setting up and enforcing standard courses of study; approving or

disapproving school district bonding proposals; selecting, adopting and purchasing textbooks;

controlling the school transportation system; and working with the proper agencies to secure federal

aid. In 1958, voters adopted a constitutional amendment that changed the structure of the state board of

education to a 10-member elected board. In 1986, two constitutional amendments were passed that

changed state governance. One amendment allowed for the addition of five members appointed by the

governor with the consent of the senate; this was a compromise to resist placing both curriculum and

finance under the control of the governor. The other amendment moved public school finance

functions from DFA to the state department of education. Program and purse were now under the

CHAPTER 7 — PUBLIC SCHOOLS AND HIGHER EDUCATION «»

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GOVERNMENT RESTRUCTURING TASK FORCE 60 \

Central 6,236

Springer 208

Maxwell 86

West Las Vegas 1,749

Mosquero 43

Mora 497

Aztec 3,364

Farmington 10,377

Logan 217

Bloomfield 3,101

Roy 51

Peñasco 501

Jemez Mountain 323

Wagon Mound 71

Española 4,392

Des Moines 97

Clayton 574

Mesa Vista 392

Questa 513

Cimarron 478

Raton 1,282

Dulce 678 Chama

Valley 400

Las Vegas City 1,928

Taos 3,030

Los Alamos 3,369

Jemez Valley

492

Cuba 672 Gallup-McKinley County

11,803 Rio Rancho 16,323

Los Lunas 8,471

Grants 3,524

Zuni 1,405

Santa Rosa 623

San Jon 147

Grady 112

Texico 546

Fort Sumner 306

Vaughn 103

Tucumcari 1,045

Corona 83

Bernalillo 3,122

Santa Fe 13,825

Pecos 667

Pojoaque 1,964

Albuquerque 95,034

Moriarty 3,372

Estancia 853

Belen 4,659

Mountainair 317

Clovis8,360

Portales 2,821

House 79

Melrose 208

Floyd 235

Elida 124 Dora

231

Tatum 307

Lovington 3,096

Hobbs 8,047

Eunice 582

Jal 394

Loving 599

Carlsbad 5,851

Artesia 3,542

Lake Arthur 139 Hagerman 427

Dexter 1,043

Roswell 9,804

Hondo Valley

169 Capitan

508

Ruidoso 2,260

Alamogordo 6,124

Cloudcroft 436

Tularosa 947

Carrizozo 175

Socorro 1,884

Gadsden 13,902

Las Cruces 24,206

Hatch Valley 1,368

Truth or Consequences 1,366

Deming 5,311

Animas 234

Lordsburg 600

Silver 3,138 Cobre

1,297

Reserve 169

Quemado 177

Magdalena 445

School Districts of New Mexico

note: Enrollment figures from 40D K-12 Enrollment by School Year, Public Education Department, June 2010.

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/ 61 FINAL REPORT / 2010

control of the state board and with it nearly 50% of the state's general fund appropriations. In 2002, the

voters adopted an amendment that placed the state responsibility for public education under the control

of the governor and converted the state board of education into the public education commission and

gave it a mostly advisory role.

The history of school districts in the state is an interesting one as well. At one time, reportedly,

there were close to 1,000 school districts; by 1941, after numerous consolidations, there were

approximately 500 rural districts that were answerable to county boards of education, as well as

municipal and independent districts. During the 1950s, the legislature directed the state board of

education and the department of education to consolidate school districts. A department staffer was

assigned the task and, using board-approved criteria, consolidated many school districts. By 1968,

there were 89 school districts, as there are now, with the loss of two districts and the addition of the

Zuni and Rio Rancho school districts. In the early 1970s, the state board consolidated Dora and

Causey, closing the Causey school district; in 1983, Encino and Vaughn were consolidated, closing the

Encino school district. Both Causey and Encino essentially have ceased to exist as viable communities.

The Encino closure became a highly emotional and public event that prompted the legislature to change

the law. Now, consolidating school districts has become a much more difficult, tedious, expensive and

litigious process.

Federal funding for public schools did not occur until the National Defense Education Act of

1957 (NDEA), when the United States lost the "race to space" to Russia's Sputnik. Originally

providing funding for curriculum specialists in math, science and foreign languages; student

counselors; and the purchase of science and foreign language lab equipment, NDEA subsequently

allowed the hiring of social studies and language arts curriculum specialists. These new positions gave

the state department of education the ability to more closely monitor district activities. In 1965, the

state department of education was further strengthened by the enactment of the Elementary and

Secondary Education Act of 1965. That act radically changed federal education funding. The act

consisted of Title 1, funding to schools based on poverty; Title 2, funding to improve school libraries;

Title 3, funding to encourage innovation; Title 4, funding to encourage research to improve education;

and Title 5, funding to strengthen state departments.

Local control has seen the same evolution as school districts, moving first from probate judges

as the policymakers to county commissions through to elected boards. While local school boards still

have tremendous latitude in running their school districts, in the 2003 school reform, the legislature

gave the ability to hire and fire to school superintendents.

The foundation of contemporary public funding mechanisms for public schools were set

initially in the period 1923-1941. The key elements were: the Public School Code, adopted in 1923;

the 20-mill limit on property tax, instituted in 1933; the emergency school tax, enacted in 1935; and the

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GOVERNMENT RESTRUCTURING TASK FORCE 62 \

governor's citizen taxpayer's committee on educational finance in 1941.

The use of local property tax to fund schools resulted in wide disparities among school districts,

with Santa Fe, Albuquerque and the "Oil Patch" districts having sufficient revenue and rural districts

having very little tax base. In 1974, the legislature passed the public school funding formula, touted by

many as a national model for funding public schools. The formula, and its attendant laws, equalized

state funding based on student enrollment and student needs and also created an environment greatly

different for school administrators, local school boards and students. Unlike many other states, New

Mexico supports public schools through its state general fund and school districts do not rely on

property taxes as a revenue source. New Mexicans have had a deep suspicion of property taxes since

Mexican rule, which only deepened during the territorial "land grab" days, so it was natural that the

state made the choice not to use property taxes for educational purposes. In addition, because of New

Mexico's historically low property tax rate, large tracts of public and tribal lands and the fact that the

railroads did not pay property tax, relying on such a tax for public school funding would not have been

beneficial.

The state's support of public schools is in the form of a guarantee that each school district will

receive essentially the same amount based on the funding formula, minus the amount in local revenue

for which the state takes credit. What started as a relatively simple formula has become more complex

over its 30-year history as more units and factors have been added in an attempt to meet every need.

Up until the 1960s, public school capital improvements were a local issue, which resulted in as

much disparity as local funding for educational programming. Property-poor school districts had poor

facilities while the reverse held true for the property-rich districts. The legislature passed the School

Construction Assistance Act in 1965 and provided $2.5 million in severance tax bonds in 1965 and

1966. Over the last 30 years, funding levels for public school capital outlay have increased

substantially, particularly after the successful lawsuit on behalf of the Zuni school district and others.

The federal district court set a series of steps and criteria that must be followed in the allocation of

capital funds and called for more funding from the legislature.

Current Statistics

Nowhere does the tyranny of New Mexico's geography show up more starkly than with public

schools. There are a little over 324,000 students spread over the fifth-largest state in 89 school

districts. Districts range from the highest student membership of almost 94,000, which is Albuquerque,

to the smallest, which is Mosquero, with 38 students (SY 2009-2010). There are 48 school districts

with fewer than 1,000 students; 33 have fewer than 500 students and 16 have fewer than 200 students.

There are seven school districts below 100 students. Some districts with the fewest students are also

the biggest geographically, and it is not uncommon for students to ride the bus for two hours and more

each way for school.

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/ 63 FINAL REPORT / 2010

Task Force Considerations

In the face of substantially reduced revenue, with public schools the single largest component of

general fund appropriations, the task force was particularly concerned with efficiencies and cost-

effectiveness in public education. The sheer number of school districts, particularly when combined

with low enrollments, seemed to be counterproductive to efficiency. The task force considered several

options to improve efficiency and cost-effectiveness in public education without harming instructional

programs.

A staff subgroup made up of Jonelle Maison and Kim Bannerman from the legislative council

service; Frances Maestas, David Harrell, Eilani Gerstner and Peter van Moorsel from the legislative

education study committee (LESC); Rachel Gudgel and Paul Aguilar from the legislative finance

committee (LFC); David Hadwiger and Michael Marcelli from the department of finance and

administration; and Scott Hughes from the office of education accountability, analyzed 32 Carruthers

report public education recommendations. The staff subgroup rejected six of the Carruthers

recommendations because they would disequalize the funding formula and had potential to affect the

disparity calculation for federal impact aid funding. For each recommendation, the staff considered the

relative advantages and disadvantages, cost savings, time frames for implementation and other options

the task force might want to consider in lieu of or supplemental to the original recommendation. Please

see the Appendix for the staff analysis.

Over the interim, the task force heard several presentations on public schools and public school

finance and the task force considered several bills on the subject. Among the issues raised, there was

consensus among task force members in support of a moratorium on new public schools and new

higher education campuses; reducing the number of school districts or requiring the regionalization of

administrative functions; measures to eliminate gaming of the funding formula; increased fiscal

accountability of school districts and the public education department; and increased performance

accountability of school personnel. LESC presented the task force with a list of items it had considered

during the interim for cost savings or efficiencies, although it was not prepared to endorse many of the

ideas. In the end, the task force deferred to LESC as the legislative experts to drive public education

recommendations to the fiftieth legislature, first session.

Higher Education

The higher education system in New Mexico is as diffuse as the executive. The state's

institutions of higher learning3 are controlled by constitutionally established boards of regents, which

have absolute control over their institutions. Many of the universities also have branch community

________ 3Article 12, Section 11 of the constitution of New Mexico lists the educational institutions of the state. The post-secondary institutions are: university of New Mexico, New Mexico state university, New Mexico institute of mining and technology, eastern New Mexico university, western New Mexico university, New Mexico highlands university and northern New Mexico state school (now called northern New Mexico college). In addition, there are the special schools: New Mexico military institute, New Mexico school for the blind and visually impaired and New Mexico school for the deaf.

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GOVERNMENT RESTRUCTURING TASK FORCE 64 \

New Mexico Institutions of Higher Education (includes branch campuses, learning sites, cooperative instruction program sites and community colleges)

CCC - Clovis Community College CNM - Central New Mexico Community College ENMU - Eastern New Mexico University LCC - Luna Community College MCC - Mesalands Community College NMHU - New Mexico Highlands University NMIMT - New Mexico Institute of Mining and Technology

NMJC - New Mexico Junior College NMMI - New Mexico Military Institute NMSU - New Mexico State University NNMC - Northern New Mexico College (State School) SFCC - Santa Fe Community College SJC - San Juan College UNM - University of New Mexico

B/LS - branch campus or learning site CIP - cooperative instruction program site

■UNM

■ENMU

Portales

Clovis

■CCC

Hobbs

■NMJC

Carlsbad ■NMSU-B/LS

Artesia

■NMSU-B/LS (2)

Las Cruces ■NMSU

Hatch

■NMSU-B/LS

Alamogordo

■NMSU-B/LS

Grants

■NMSU-B/LS

Silver City

■WNMU

■WNMU-B/LS Deming

■WNMU-B/LS

Truth or Consequences

■WNMU-B/LS

Ruidoso

■ENMU-B/LS

Roswell

■MCC

Tucumcari

Los Alamos

■UNM-B/LS

Gallup ■UNM-B/LS

Los Lunas

■UNM-B/LS

■CNM-B/LS ■NMHU Las Vegas Rio Rancho

■NMHU-B/LS ■UNM-B/LS

Taos ■UNM-B/LS (5)

Española ■NNMC ■NMHU-B/LS

El Rito

■LCC

Santa Rosa

■LCC-B/LS

Raton

■NMHU-B/LS ■LCC-B/LS

Springer

■LCC-B/LS

Sunland Park

■NMMI

■NMIMT

Socorro

■NMIMT-B/LS ■NMHU-B/LS

■SJC

Santa Fe

■ENMU-B/LS

■WNMU-B/LS

■NNMC-B/LS

■SJC

Aztec ■SJC

Kirtland Farmington

Mesquite

■NMSU-B/LS Gadsden

White Sands ■NMSU-B/LS

■NMSU-B/LS

Loving

■NMSU-B/LS

■NMSU-B/LS ■UNM-B/LS

Zuni ■CNM (5)

■NMSU-B/LS (2) Lordsburg

Chaparral ■NMSU-B/LS

■NMSU-B/LS

Bernalillo

Albuquerque

■SFCC (2)

■NMHU-CIP

■NMHU-CIP

■NMHU-CIP

■UNM-CIP

■ENMU-CIP ■NMSU-CIP

■UNM-B/LS

■UNM-CIP

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/ 65 FINAL REPORT / 2010

colleges under their control. The independent community colleges are created out of school districts, in

which one or more school districts go to the voters to establish a community college or technical-

vocational institute; they are controlled by elected governing boards and are considered political

subdivisions instead of institutions of the state. The higher education department (HED), a cabinet

department belonging to the governor, has limited power and authority over any of the state or local

institutions. Because the higher education funding formula is not in law, legislators are less likely to

know and understand the formula or how institutions are funded.

In the last decade, New Mexico has seen an explosion in the growth of higher education. State

and local policymakers made a conscious decision to foster access to higher education and it did so

through the higher education funding formula by financing enrollments and square footage and through

programs such as the legislative lottery scholarship program for graduating high school students and

the college affordability scholarships for returning adults. The legislature also created several loan-for-

service programs for health care professionals, teachers, minority doctoral students and public service

lawyers. However, the state's commitment to funding access has not led to higher graduation rates over

the same period and, because the funding formula does not control the excessively high course

withdrawal rate and the number of excess credit hours toward graduation, the state ends up paying a

substantial premium for low performance. LFC has noted that "the State does not incentivize degree

production, nor monitor quality outcomes of existing programming and degrees they produce".

The public policy driving access has resulted in an untenable number of institutions and

campuses, or sites as they are termed by HED. There are 24 public post-secondary educational

institutions in New Mexico, with over 60 sites in a state of approximately 2,000,000 population. The

six universities have 10 branch community colleges and 39 educational sites; northern New Mexico

college has two sites; and the seven independent community colleges have a total of 19 sites. In

addition, there are cooperative instructional programs offered on some community college, campuses;

for example, the university of New Mexico (UNM), New Mexico state university, eastern New Mexico

university and New Mexico highlands university (NMHU) offer courses at San Juan college, and UNM

and NMHU offer courses at Santa Fe community college, which is building another center at which

post-AA degree programs may be offered. The task force supports a moratorium on any new

campuses, or sites, or the creation of any more community colleges. It encourages its successor to

work with the governor, HED, the boards of regents and the governing boards to effectuate a

substantial contraction in off-main- campus offerings, in particular duplicative offerings in the same

geographic area or offerings outside an institution's reasonable geographic area.

In addition to a moratorium on new campuses, the task force agrees with LFC, HED, the higher

education funding formula task force, the I&G steering committee, the council of university presidents,

the New Mexico independent colleges and the New Mexico association of community colleges that an

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GOVERNMENT RESTRUCTURING TASK FORCE 66 \

in-depth study of the higher education funding formula, and the policy drivers behind the formula, is of

critical importance. Included in the study should be a reevaluation of tuition waivers, which cost the

state approximately $60 million per year, and enrollment incentives versus completion incentives.

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/ 67 FINAL REPORT / 2010

Health care financing and administration is currently spread throughout virtually all of state

government. The delivery of health care in New Mexico is a complicated array of funding, agencies,

programs, insurers and public and private obligations. The federal government pays primarily through

medicaid, the Indian health service, veterans hospitals and federal grants; the state pays for services

directly through the general fund and tobacco settlement payments and indirectly through tax

exemptions and credits; the counties pay through indigent funds; and the private sector pays through

employer/employee insurance contributions, out-of-pocket and private grants. Eleven departments of

state government are involved in administering or delivering health care or health care-related

programs. The major ones are:

▸ the human services department (HSD), which funds medicaid;

▸ the department of health (DOH), which delivers health care in six

facilities: Fort Bayard hospital, New Mexico veterans' center, New

Mexico behavioral health institute, Sequoyah, New Mexico

rehabilitation center and Turquoise Lodge; provides supports for

developmental disabilities through the DD waiver program and the

family infant toddler program; and serves as the public health

department and is responsible for rural primary health care initiatives of

the state as well as epidemiology and trauma funding;

▸ the aging and long-term services department (ALTSD), which provides

for long-term community care, including the Mi Via, CoLTS and PACE

programs and services for persons with brain injuries;

▸ the children, youth and families department (CYFD), which provides

health services to children in protective services, including foster care

and juvenile justice facilities;

▸ the corrections department (CD), which provides medical and

CHAPTER 8 — HEALTH CARE FINANCE AND ADMINISTRATION «»

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GOVERNMENT RESTRUCTURING TASK FORCE 68 \

behavioral health care to prison inmates; and

▸ the instructional support and vocational rehabilitation division in the

public education department, which provides rehabilitation services to

the disabled.

The workforce solutions department, the department of environment, the department of finance

and administration and, obliquely, the regulation and licensing department also have roles in the health

arena. The taxation and revenue department administers tax exemptions and credits. The risk

management division of the general services department, the public school insurance authority, the

retiree health care authority and the Albuquerque public schools insure state, local and public school

employees. In addition to state departments, the university of New Mexico hospital/health sciences

center (UNMH/HSC) provides direct services as do the public schools, which provide school-based

health and medicaid school-based services. There are six agencies that primarily fund behavioral

health services through the interagency behavioral health purchasing collaborative: HSD/medicaid,

HSD/behavioral health services division, CYFD, CD, DOH and ALTSD.

There are numerous boards and commissions in state government, many of them advocacy, that

deal with specific health-related issues, such as the New Mexico health policy commission, the

developmental disabilities planning council, the brain injury advisory council, the governor's

commission on disability, the governor's HIV/AIDS policy commission, the telehealth commission, the

HSD/Medicaid

PACE

Mi Via 

Brain Injury CoLTS C 

Waiver

ALTSD CYFD

Children in Protective Services

Behavioral Health Services 

DOH

CoLTS C Waiver

Mi Via 

CoLTS

MF Waiver

DDWaiver

EPSDT

FQHCs

HIV/AIDS Waiver

SBHCs

ICFMRs, Families First, Early Intervention, 

County Maternal/Child 

Health, Emergency Contraception & 

More

WSD DVR

GCDUNM

Public Education Department

WDI

CoLTS

School‐Based Health

Envision New Mexico

SCI

Medicaid School‐Based Services

Medicaid OverlapsMEDICAID OVERLAPS 

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/ 69 FINAL REPORT / 2010

IBACAgencies

Retiree Health Care

Albuquerque Public Schools

GSD/Risk Management

PSIA

JointRFP for Purchase of Health Insurance

Prescription Drugs

Benefit Package(s)

ASO

Benefit Package(s)

Benefit Package(s)

Benefit Package(s)

ASO

ASOASO

Prescription Drugs

Prescription Drugs

Prescription Drugs

IBAC OVERLAP 

IBACAgencies

GSD/Risk Management

Retiree Health Care

Albuquerque Public Schools

PSIA

Benefit Package(s), 

Prescription Drug 

Coverage and ASO

COULD LOOK LIKE THIS 

OR THIS 

IBACAgency

Benefit Package(s), 

Prescription Drug 

Coverage and ASO

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GOVERNMENT RESTRUCTURING TASK FORCE 70 \

trauma system fund authority, several emergency management service boards, the medical use of

cannabis board and the patient qualification board, the office of the governor's council on women's

health, the medical advisory board to the athletic commission, the behavioral health planning council

and the several licensing boards. On top of all that, there are multiple state entities involved in access

to health insurance, including HSD, the public regulation commission, the New Mexico medical

insurance pool and the New Mexico health insurance alliance.

The fiscal year 2010 medicaid projection of August 3, 2010 assumed state contributions of

$757.3 million to match federal payments of $2,991.6, for a total of $3.749 billion. Public employment

health insurance benefits totaled $967.7 million. UNMH/HSC, including Carrie Tingley crippled

children's hospital; children's psychiatric; cancer center; and other special programs such as the office

of the state medical investigator, newborn intensive care, poison control and nurse expansion, spent

$206.1 million on health care programs, of which $174.7 million was state funding.

Given the complexity of financing and services, the task force believes there are significant

opportunities for streamlining and consolidation that will lead to better services being provided at less

cost, at least for administrative costs. The task force had hoped the legislative health and human

services committee (LHHS), as the legislative experts in this area, would endorse consolidation

legislation, but that committee could not reach a majority on several measures it considered. The task

force has endorsed the Health Administration and Finance Consolidation Act, forwarded to it, though

not endorsed, by LHHS, that creates the health administration and finance department that transfers to

it: (1) administration and operation of medical assistance programs and behavioral health services

programs; and (2) administration and operation of home- and community-based waiver services and

other long-term services programs. The bill authorizes a study of the transfer of the administration of

health benefit plans for state and local government employees, public school employees and public

retirees. The bill also elevates the New Mexico health policy commission to an adjunct agency and

provides for the appointment of the commission's director by the commission. This ensures an

independent review and voice in health policy matters.

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/ 71 FINAL REPORT / 2010

In a few short months during an election year, the members of the government restructuring

task force faithfully met and listened to state experts telling them about the New Mexico economy and

the financial condition of state government; government structure; history of government

reorganization in New Mexico and other states' restructuring efforts during this fiscal crisis; the state of

public school and higher education funding; medicaid and health care financing and delivery; boards

and commissions; and analyses of topics they heard and ideas they put forward, including various

constitutional and statutory considerations and fiscal impacts. They received three three-inch binders

full of information over the interim. In an otherwise busy interim for legislative members, including

membership on one or more other committees, there was never any problem with achieving a quorum

at the meetings; members came on time, listened intently to presentations, asked probing questions and

worked with the facilitator, Mr. Karpoff, to digest the information and direct its staff toward the task

force's final recommendations and legislative package.

As indicated in this report, there is still much work to do. There are further consolidations of

agencies to be done and more agencies, boards and commissions that could be eliminated. Our new

governor has an ideal opportunity to direct a review of the internal structure, programs and staffing of

each agency under her authority to realize further streamlining that will lead to the four guiding

principles of efficiency, cost-effectiveness, accountability and transparency. The beginning of a new

gubernatorial administration is a perfect time to ask the most important question:

"What is the core, essential mission of state government and what are the

core, essential services that must be provided by the state?".

The task force encourages Governor Martinez and the legislature to work together to continue

the task begun by the committee on government efficiency and continued by the government

restructuring task force. If the governor and the legislature undertake the tasks identified by the task

force in its short- and long-range goals table and in the future studies section of the report, state

policymakers will protect the state's core, essential services through the continuing fiscal crisis and on

toward the bright future of New Mexico.

CONCLUSIONS «»

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APPENDIX B

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Government Restructuring Task Force Endorsed Legislation

Title Brief Description

Create the commerce department

.182953.5 sponsored by Rep.Lundstrom and Sen. Cisneros

• Combines the functions of the economicdevelopment department, tourism department andworkforce solutions department.

• Abolishes the border authority, intertribalceremonial board and office, small businessregulatory advisory commission and litter controlcouncil.

• Sunsets boards and commissions that fall under thepurview of the new commerce department.

Reorganize the energy, mineralsand natural resources department(EMNRD)

.182878.4 sponsored by Rep.Lundstrom

• Transfers the functions of the department of gameand fish into a new game and fish division ofEMNRD.

• Eliminates the state game commission and transfersits duties to the game and fish division.

• Combines the coal surface mining commission andthe mining commission.

• Abolishes the technical advisory committee to theoffice of interstate gas markets and the natural landsprotection committee.

• Sunsets boards and commissions that fall under thepurview of EMNRD.

Reorganize the department offinance and administration (DFA)and the general servicesdepartment (GSD)

.182861.5 sponsored by Rep.Varela

• Transfers the state personnel office and thepurchasing division of GSD into DFA

• Creates the executive services bureau of theadministrative services division of DFA to provideadministrative and clerical services for smallagencies, defined 20 or fewer FTE or $1 million orless budget.

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Title Brief Description

Eliminate the public regulationcommission (PRC)

.182745A.1 sponsored by Sen.Lovejoy

• Constitutional amendment to eliminate PRC andhave its functions performed as provided by law.

Implement constitutionalamendment to assign the duties ofPRC .182745B.1 sponsored by Sen.Lovejoy

• Provides the process for the legislature to determineagencies to regulate functions of PRC, includingutilities, insurance, pipeline, transportation.

• Repeals the PRC and PRC districting statutes .

Eliminate the public educationcommission (PEC) and secretary'sduties

.182821.2 sponsored by Rep.Miera

• Constitutional amendment to eliminate thecommission and remove listing of duties of thesecretary of public education in the constitution;duties will be as provided by law.

Reorganize the department ofpublic safety (DPS)

.182722.4 sponsored by Rep.Varela

• Makes the homeland security and emergencymanagement department a division of DPS.

• Moves the fire marshal division of PRC into adivision of DPS.

• Transfers oversight of the enhanced 911 programfrom the local government division of DFA to DPS,creating a new enhanced 911 division.

• Amends the Enhanced 911 Act.• Applies the E-911 surcharge to apply to prepaid

phone cards and new phone service technologies.• Provides for development of a statewide

enhanced 911 system using technologiesprovided by the department of informationtechnology.

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Title Brief Description

• Eliminates the crime stoppers advisory council,mounted patrol board of directors, DNAidentification system oversight committee andintrastate mutual aid committee and transfers theirfunctions to DPS.

• Sunsets the interoperability planning commissionand the state emergency response commission.

Combine the state racingcommission and the gamingcontrol board

.182723.2 sponsored by Sen.Neville

• Combines regulatory authority related to horseracing and pari-mutuel wagering of the state racingcommission and the functions of the gaming controlboard.

Departments provide services toadministratively attached agencies

.182713.1 sponsored by Sen.Eichenberg

• Amends the Executive Reorganization Act to requireexecutive departments to provide administrative andclerical services to administratively attachedagencies.

Administrative Hearings Act

.182715.1 sponsored by Sen.Eichenberg

• Creates a new administrative hearings officeattached to the office of the attorney general.

• Requires all executive state agencies that handleadministrative hearings to go through the office,unless prohibited by law from doing so.

• Moves all current hearing officers to the new office.

Eliminate state personnel board'sauthority to exempt positions

.182712.1 sponsored by Rep.Varela

• Amends the Personnel Act and the ExecutiveReorganization Act to limit the number of assistantor deputy secretaries and exempt administrativeassistants.

• Eliminates the personnel board's authority to exemptpositions from covered service; previously, it haddiscretion to determine a position was policymaking.

Reporting of exempt salaries

.182783.1 sponsored by Sen.Lopez

• Requires executive salaries, not just salary ranges, tobe reported in the exempt salaries plan and includedin the general appropriation act.

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Title Brief Description

Review of exempt and classifiedpositions – study

.182734.1 sponsored by Rep.Lundstrom

• Joint memorial that requests the state personneloffice to conduct a review of exempt and classifiedadministrative and managerial positions and thesalaries provided for each classification.

• Report on the review by September 1, 2011.

Making per diem and mileage rateconsistent for state employees

.182949.1 sponsored by Sen.Eichenberg

• Makes per diem and mileage consistent for everyonecovered by the act, including the state and politicalsubdivisions

• Uses state employee rates and rules.

Sunset bill

.182948.3 sponsored by Rep.Bandy

• Sunsets administratively attached and adjunctagencies and boards, commissions, councils, taskforces, committees and other membership entities ofthe executive branch.

• See the Sunset Bill table in Appendix for a list ofagencies and sunset dates.

Allow legislature to overturnagency rules

.182946.1 sponsored by Sen.Neville

• Constitutional amendment.• Allows the legislature to overturn a rule adopted by

any state agency by a two-thirds' vote in each house.

Public school cash balances

.183190.1 sponsored by Rep.Bandy

• Allows public schools to keep and carry over cashbalances from year to year.

Department of environment(NMED) reorganization

.183544.2 sponsored by Sen.Neville

• Transfers licensing authority under the MedicalImaging and Radiation Therapy Health and SafetyAct from NMED to the department of health.

• Eliminates the water quality control commission'sauthority to enact rules and transfers rulemakingpower to NMED.

• Eliminates the environmental improvement board'spower to enact rules and transfers rulemaking powerto NMED.

• Eliminates the occupational health and safety reviewcommission and transfers powers to theenvironmental improvement board.

• Eliminates the wastewater technical advisory

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Title Brief Description

committee and transfers powers to NMED.• Abolishes the storage tank committee, the

occupational health and safety special committeesand the food service sanitation advisory council.

• Sunsets all boards and commissions that fall underNMED.

Legislative Lottery Tuition Act

.183565.1 sponsored by Sen.Payne

• Replaces current laws with a short-titled act thatconverts the legislative lottery scholarship into aloan for students who do not complete a degree orcertificate program.

• Allows up to one year after high school graduationto be eligible and allows up to another year beyondthe common four years or two years to complete adegree.

• Does not count remedial courses as qualifyingcourses and does not pay for those courses.

Organic Production Act

.183200.4 sponsored by Rep.Bandy

• Repeals the Organic Commodity Act in favor of theOrganic Production Act.

• Transfers the powers of the organic commoditycommission to the New Mexico department ofagriculture.

Health Administration andFinance Consolidation Act

.183305.2 sponsored by Sen.Lopez

• Creates the health administration and financedepartment (HAFD).

• Transfers administration and operation of medicalassistance programs and behavioral health servicesprograms to HAFD.

• Transfers administration and operation of home- andcommunity-based waiver services and other long-term services programs to HAFD.

• Authorizes a study of the transfer of theadministration of health benefit plans for publicschool employees, state and local public employeesand public retirees to HAFD.

• Establishes the New Mexico health policycommission as an adjunct agency and provides forappointment of the agency's executive director.

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Title Brief Description

GRTF continuation

.183439.1 sponsored by Rep.Varela

• Continues the work of the government restructuringtask force in 2011.

Remove rulemaking authorityfrom construction industries andmanufactured housing (bill theresult of bds and comsnsdecisions)

.183762.1 sponsor to bedetermined

• Transfers rulemaking authority from theconstruction industries and manufactured housingdivisions to the regulation and licensing department.

Cultural properties reviewcommittee (bill the result of bdsand comsns decisions)

.183849.1 sponsored by Rep.Bandy

• Committee sets policy; staff implements day-to-day.

Professional sports regulated byregulation and licensingdepartment (RLD) (bill the resultof bds and comsns decisions)

.183838.1 sponsor to bedetermined

• Eliminates the New Mexico athletic commission andgives authority to RLD to regulate professionalsports.

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Title Brief Description

Repeal boards and commissions

Limit membership:@ behavioral health planningcouncil, down from over 40 to nomore than 20

.183443.3 sponsored by Sen.Lovejoy

Based on recommendations of the task force, the billproposes to eliminate the following boards andcommissions:agriculture:(1) rangeland protection advisory committee

cultural affairs:(1) New Mexico state library commission(2) New Mexico film museum(3) Fort Stanton development commission(4) intertribal ceremonial board(5) Martin Luther King, Jr. commission, functionstransferred to the office on African American affairs(6) music commission; functions transferred to artsdivision/New Mexico arts commission

education:(1) higher education advisory board(2) public service law advisory committee(3) mathematics and science advisory council(4) the family and youth resource advisory committee

general government:(1) alternative dispute prevention and resolution advisorycouncil(2) governor's residence advisory commission(3) private equity investment advisory committee(4) state procurement standards and specificationscommittee

health and human services:(1) brain injury advisory council, functions to thedevelopmental disabilities planning council(2) child development board(3) children, youth and families advisory committee(4) interagency coordinating group(5) children's cabinet(6) compulsive gambling council(7) governor's commission on disability and the advisorycouncil on disability, functions transferred to thedisabilities concerns division of the aging and long-termservices department

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Title Brief Description

(8) health care providers licensing and credentialing taskforce(9) governor's HIV and AIDS policy commission(10) individual development account council(11) medical advisory committee(12) next generation council(13) pain management advisory council(14) New Mexico telehealth commission(15) youth alliance(16) several emergency medical service (EMS) boards,commissions and committees, functions to the EMSbureau of the department of health (in body of bill)

instrumentalities:(1) New Mexico exposition center authority(2) historic landscape trust(3) New Mexico industrial and agricultural financeauthority

military affairs:(1) veterans' services advisory board(2) armory board council (in body of bill)

public safety and criminal justice:(1) alcohol server education advisory committee(2) corrections industries commission, functions to thecorrections department(3) domestic violence homicide review team(4) New Mexico domestic violence leadershipcommission(5) juvenile public safety advisory board(6) governor's organized crime prevention commission

sports:(1) bicycle racing commission(2) sports advisory committee

transportation:(1) traffic safety bureau advisory committee

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Government Restructuring Task ForceSunset Bill

2013-2014 2015-2016 2017-2018

New Mexico communitydevelopment council

voting system certificationcommittee

New Mexico youthconservation corpscommission

military children educationcompact state council

main street revolving loancommittee

public safety advisorycommission

council for purchasing frompersons with disabilities

state board of finance group benefits committee

Cumbres and Toltec scenicrailroad commission

state investment council board of the retiree healthcare authority

museum board of regents tribal infrastructure board firefighters' survivorssupplemental death benefitsreview committee

board of trustees of the NewMexico museum of naturalhistory and science

colonias infrastructure board DWI grant council

New Mexico arts commission juvenile justice advisorycommittee

hazardous materials safetyboard

cultural properties reviewcommittee

New Mexico sentencingcommission

state commission of publicrecords

New Mexico museum ofspace history commission

sex offender managementboard

risk management advisoryboard

board of the farm and ranchheritage museum

Indian affairs commission capitol buildings planningcommission

board of directors of thenational Hispanic culturalcenter

information technology ratecommittee

education trust board

board of trustees of the NewMexico veterans museum

information technologycommission

board of directors of publicschool insurance authority

state land trusts advisoryboard

public employee laborrelations board

New Mexico veterans'advisory board

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2013-2014 2015-2016 2017-2018

industrial training board personnel board board of medicalinvestigators

apprenticeship committees state armory board state search and rescuereview board

apprenticeship and trainingadvisory committee

Indian education advisorycouncil

children's trust fund board oftrustees

data system council Hispanic education advisorycouncil

fire protection grant council

regional educationcoordinating councils

adolescent treatment hospitalgoverning board

interstate stream commission

council on technology ineducation

behavioral health planningcouncil

acequia commission

public school capital outlaycouncil

trauma system fund authority soil and water conservationcommission

commission on the status ofwomen

interagency committee onlong-term care

New Mexico livestock board

office of the governor'scouncil on women's health

hospital-acquired infectionadvisory committee

New Mexico beef council

advisory committee to thestate agency on aging

medical use of cannabisadvisory board

New Mexico sheep and goatcouncil

commission for the blind New Mexico lawenforcement academy board

commission for deaf andhard-of-hearing persons

state council for interstateadult offender supervision

developmental disabilitiesplanning council

parole board

family infant toddlerinteragency coordinatingcouncil

crime victims reparationcommission

statewide adult support andservices task force

state council for interstatejuvenile supervision

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2013-2014 2015-2016 2017-2018

state advisory committee onsubstitute care review

land grant council

civil legal servicescommission health standardsadvisory board

skills council tree plantingadvisory committee

unemployment compensationboard of review fire planningtask force

unemployment compensationstate advisory council,industry councils and specialcouncils

advisory council on workers'compensation andoccupational diseasedisablement

water trust board

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State of New Mexico

Legislative Council Service411 State Capitol, Santa Fe, New Mexico 87501 (505) 986-4600 Fax: (505) 986-4680

Information Memorandum

DATE: January 12, 2011

TO: Government Restructuring Task Force Members

FROM: Jonelle Maison

SUBJECT: COMMERCE DEPARTMENT — SECTION-BY-SECTION EXPLANATION

Following is a section-by-section explanation of the proposed commerce department and

necessary amendatory sections. Any opinions expressed are those of the author and do not

necessarily reflect the opinions of the legislative council or other members of its staff.

The purpose of the bill is to create a commerce department by combining the functions of

the economic development department (EDD), tourism department and workforce solutions

department (WSD). In addition, it abolishes the border authority. The bill also sunsets boards

and commissions that fall under the purview of the new commerce department.

Note that many of the sections creating a cabinet department are standard sections based

on the Executive Reorganization Act, and they are not discussed in this memorandum.

Section 1 (page 1). Short title — Sections 1 through 26 of the bill are the Commerce

Department Act; the remainder are the necessary amendments, temporary provisions and repeal

sections.

Section 2 (pages 1-2). Purpose — This is a standard reorganization section. The

purpose is to establish a single, unified department for economic development, tourism and work

force solutions.

Section 3 (page 2). Definitions —"Department" and "secretary" are defined.

Section 4 (pages 2-3). Department created — This section provides the structure of the

commerce department, which is:

(1) office of the secretary;

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(2) administrative services division, which includes:

(a) economic research and analysis bureau (from WSD); and

(b) information technology bureau;

(3) economic development division, which includes:

(a) international trade bureau (which includes Mexican affairs from EDD and

some border authority functions);

(b) marketing bureau;

(c) New Mexico film bureau; and

(d) enterprise development bureau (which collapses several functions from

EDD);

(4) labor relations division, which includes:

(a) human rights bureau;

(b) apprenticeship bureau; and

(c) labor and industrial bureau;

(5) tourism development division, which includes:

(a) New Mexico magazine bureau; and

(b) welcome centers bureau; and

(6) work force transition services division (mostly unemployment functions from

WSD).

The secretary has the power to reorganize internally, but a change in statutory divisions

or bureaus must be reported to the next regular session of the legislature. While secretaries have

generally had the authority to reorganize, they usually have not come back to the legislature to

have their laws changed; this has led to confusion between the law and reality.

Section 5 (pages 3-4). Administratively attached agencies — These are the boards and

commissions that are currently attached to the superseded departments:

(1) apprenticeship council;

(2) economic development and tourism commission (this combines the two

existing commissions);

(3) human rights commission;

(4) labor and industrial commission;

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(5) New Mexico-Chihuahua commission;

(6) New Mexico-Sonora commission;

(7) spaceport authority;

(8) state fair commission;

(9) workers' compensation administration; and

(10) state workforce development board.

In an effort to alleviate some duplication and overlap, the department is required to

provide administrative services to administratively attached agencies.

Section 6 (page 4). Secretary of commerce — This standard section provides that the

secretary of commerce is appointed by the governor and confirmed by the senate.

Section 7 (pages 4-7). Secretary powers and duties — This is also a standard section

and is a copy of the powers and duties section in the Executive Reorganization Act. It includes

that divisions of the department are run by directors who are exempt and serve at the pleasure of

the secretary. The section also lays out how the department will be operated, including how

rules must be adopted and promulgated.

Section 8 (page 7). Bureaus — This is another standard section that allows for the

establishment of bureaus, run by chiefs. Chiefs and subsidiary employees are covered by the

Personnel Act unless otherwise provided by law.

Section 9 (pages 7-8). Organizational units; powers and duties specified by law;

access to information — This is another standard section providing that organizational units of

the department have the powers and duties specified by law but that they are subject to the

direction and supervision of the secretary, who has final decision-making authority unless the

law specifically exempts the organizational units. In the existing three departments, there are no

divisions or functions exempted from the power of the secretaries. The section also gives the

department access to all state information not specifically held confidential by law. Proprietary

technical information or that related to possible relocation or expansion of business is deemed

confidential.

Section 10 (pages 8-9). Cooperation with federal government and single state

agency (existing law) — This is yet another standard organizational section; in this instance, it

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brings forward the authority of the former WSD to cooperate with the federal government in the

administration of employment, unemployment and training programs funded by the federal

government, and it provides that the governor or the secretary may designate the department as

the single state agency for the administration of such programs. No designation of a single state

agency can be made in contravention of state law.

Section 11 (pages 9-12). Economic development and tourism commission (existing

law) — This section creates the commission and administratively attaches it to the department.

The commission is the planning agency that provides advice to the department on policy matters,

and it is responsible for the annual approval and update of the state's five-year economic

development and tourism plans.

The commission consists of 15 members who are qualified electors of the state, no more

than eight of whom at the time of their appointment are members of the same political party and

at least two of whom are Native American. Members are appointed by the governor and

confirmed by the senate. Seven members are appointed from the seven planning districts, three

are from the congressional districts and two are at-large. They serve five-year staggered terms

and cannot be removed except for cause.

The commission:

(1) develops and recommends policies and provides program guidance to the

department;

(2) reviews, modifies and approves annual updates to the five-year plans;

(3) assists and promotes the department on matters relating to economic

development, tourism, tribal tourism, technology, technology-based new business development

and technology commercialization projects, including small business needs; and

(4) reviews federal technology-based programs requiring state matching funds and

authorizes expenditures or pledges of state match funds.

The commission is sunsetted on July 1, 2015 unless continued by law. There is no wind-

up period provided.

Section 12 (pages 12-14). Additional economic development duties (existing law) —

This section delineates the department's functions regarding economic development, including

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the following summarized duties:

(1) provide coordinated statewide perspective with regard to economic

development activities;

(2) work with and provide staff support to the economic development and tourism

commission;

(3) develop, maintain and provide economic and demographic information to the

governor, the legislature, other state agencies and local governments;

(4) provide a database for local and regional economic development groups;

(5) actively encourage new economic enterprises to locate in New Mexico and

assist existing businesses to expand;

(6) monitor the progress of state-supported economic development activities and

prepare annual reports of those activities and their status and impact;

(7) create and encourage methods designed to provide rapid economic

diversification development;

(8) provide for technology commercialization projects as an incentive to industry

locating or expanding in the state and promote and market federal and state technology

commercialization programs;

(9) support technology transfer programs and promote New Mexico as a

technology conference center;

(10) develop and implement enhanced statewide procurement programs;

(11) provide support and assistance in the creation and operation of development

finance mechanisms such as business development corporations to ensure capital availability for

business expansion and economic diversification; and

(12) serve as the lead agency in coordination of the census program at the state

data center.

Section 13 (page 14). Additional tourism promotion duties (existing law) — This

section delineates the department's functions regarding tourism promotion, including the

following summarized duties:

(1) provide a coordinated statewide perspective with regard to tourism activities;

(2) staff the economic development and tourism commission in formulating and

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implementing the state's five-year tourism plan;

(3) provide a database for local and regional tourism groups and serve as a

comprehensive source of information and assistance to tourism-related businesses wishing to

locate, expand or do business in New Mexico;

(4) monitor the progress of state-supported tourism activities and prepare annual

reports of those activities and their status and impact; and

(5) maintain and update records on the status of all completed and ongoing

tourism-related projects of the department.

Section 14 (pages 14-15). Additional duties regarding Indian arts, crafts and culture

(existing law) — The department has the following duties:

(1) encourage the preservation and development of Indian arts and crafts among

the Indian nations, tribes and pueblos of the state;

(2) encourage the preservation of traditional rites and ceremonials of Indian

nations, tribes and pueblos; and

(3) promote the intertribal ceremonial.

Section 15 (pages 15-16). Additional duties regarding defense conversion and other

technology (existing law) — The department is the lead agency to promote defense conversion

technology, to coordinate the transfer of defense technology and other technology from federal,

state and local government facilities to private sector industries and to promote private-public

partnership and business development programs. The department shall coordinate or accept

federal and state funds appropriated for conversion of defense technologies and to coordinate

technology transfer in accordance with the state's technology development plan. The department

may contract with appropriate partnership intermediaries to assist in the coordination of defense

conversion duties. As part of this, the department shall:

(1) oversee the activities of the manufacturing productivity center and

manufacturing extension programs;

(2) coordinate the activities of small business incubators;

(3) coordinate appropriate divisions in the department to provide technology

export assistance;

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(4) coordinate small business development and assistance programs;

(5) identify sources of funding for capital expenditure programs and initial

venture programs;

(6) coordinate the development of regional technology clusters; and

(7) provide support and coordination assistance to the commission and the

secretary in development of defense conversion industries.

Section 16 (pages 16-17). Department cooperation with local and regional economic

development agencies (existing law) — The department shall cooperate with local and regional

development agencies, including the following summarized duties:

(1) coordinating state, local or regional activities and assisting in gathering

information on local and regional assets;

(2) assisting in the development of a plan for the expansion of the local or regional

economic base; and

(3) providing matching funds through the state cooperative advertising program.

Section 17 (pages 17-18). Administrative services division — This section includes

some of the particular administrative services for which the division is responsible, including:

(1) keeping all official records of the department and administratively attached

agencies;

(2) providing personnel administration, financial management, procurement and

budget preparation for the department and administratively attached agencies; and

(3) performing economic research and analysis for the department and commission.

The division administers programs and grants that have been assigned generally to the

department by the governor or the economic development and tourism commission or by statute.

Section 18 (page 18). Tourism enterprise fund (existing law) — This is a

nonreverting fund that includes revenue from sales of souvenirs and sundries at visitor centers,

web site-based sales and television special program rights to be used by the department to carry

out its duties. Section 19 (pages 18-21). Economic development division (existing

law) — This section includes some of the particular functions for which the economic

development division is responsible, including:

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(1) enhancing the business climate to encourage the start-up, relocation,

development and growth of technology-based industry in New Mexico;

(2) promoting an expanded, diversified technology-based economy;

(3) supporting in-state industries and attracting new industries to New Mexico;

(4) formulating a five-year state technology development plan and submitting it

to the economic development and tourism commission;

(5) developing agreements with federal research, development, testing and

evaluating organizations and universities to facilitate the transfer and commercialization of

technology; and

(6) developing requests for proposals in technology commercialization areas and

monitoring progress on state-funded research and development projects.

Any information obtained by the economic development division that is deemed by the

director and the secretary to be proprietary technical or business information shall be held in

confidence, and the information is not deemed a public record under the Public Records Act or

open to inspection under Section 14-2-1 NMSA 1978.

Section 20 (pages 21-23). Enterprise development bureau duties and business

incubators (existing law) — The enterprise development bureau has the following summarized

duties:

(1) provide information and assistance to businesses wishing to relocate to New

Mexico or to expand within New Mexico;

(2) develop and maintain a comprehensive statewide business information

database and referral service;

(3) provide assistance regarding licensing, permitting and taxation procedures;

and

(4) establish a reporting procedure to monitor the success of the referral service.

Business incubators receiving state funds are required to pass a state incubator

certification program administered by the bureau. The bureau certifies based on documentation

that the incubator is qualified to provide services.

Section 21 (pages 23-25). Artisans business development program and fund

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(existing law) — This section creates the New Mexico artisans business development program

in the economic development division to promote artisans and artisans' wares, in conjunction

with the arts division of the cultural affairs department. The New Mexico artisans business

development fund is a nonreverting fund consisting of appropriations, gifts, grants, donations

and investment income, which is used to carry out the purposes of the program.

Section 22 (page 25). Technology-based proposals and state match fund (existing

law) — The state match fund is a nonreverting fund that can be used only as state matching

funds when submitting technology-based proposals to the federal government.

Section 23 (pages 25-26). International trade bureau duties (existing law) — The

international trade bureau is responsible for conducting and coordinating the state's relations

with other countries and promoting New Mexico and its products and services. Duties are

summarized as:

(1) coordinating activities of the department and other state agencies as those

activities relate to improving New Mexico's relations and trade with other countries;

(2) promoting New Mexico to international investors;

(3) promoting New Mexico products and services to potential international

consumers and establishing a central registry for New Mexico products and services;

(4) developing, maintaining and using a database of potential domestic and

international investors and consumers for New Mexico and its products and services;

(5) fostering, coordinating and supporting private promotion efforts; and

(6) working with persons outside of state government to formulate a trade

promotion plan for inclusion in the department's five-year economic development and tourism

plans.

Section 24 (pages 26-27). Mexican trade (existing law) — The international trade

bureau is responsible for:

(1) conducting and coordinating the state's relations with Mexico and Chihuahua;

(2) promoting New Mexico products and services in Mexico;

(3) coordinating activities of the department and other departments as those

activities relate to improving New Mexico-Mexico relations and trade;

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(4) establishing and updating the New Mexico trade registry; and

(5) providing periodic reports to the New Mexico finance authority (NMFA)

oversight committee on its activities and the activities of the state pertaining to New Mexico-

Mexico relations, trade and border development.

Section 25 (pages 27-29). Minority business assistance (existing law) — This section

defines "minority business" as a business with its principal place of business in New Mexico

with majority ownership held by residents who are African American, Hispanic American, Asian

American or Native American and that employs 20 or fewer people.

Section 26 (pages 29-30). Minority business assistance fund (existing law) — This

section creates a nonreverting fund to carry out the provisions of Section 25.

Ú The next 60 sections are amendatory material, with only name changes for the most part.

Only substantive changes will be discussed.

Section 28 (pages 31-33). Main street revolving loan committee — The boards and

commissions subcommittee wrestled with the expense of per diem and mileage for numerous

boards and commissions. This section provides that members will not receive per diem and

mileage.

Section 31 (pages 36-38). Powers and duties of NMFA oversight committee — This

section includes monitoring and providing advice and assistance on border economic

development activities, particularly state and government capital planning and financing of

border and port-of-entry capital projects. This is similar to the committee's duty for the border

authority, which is being abolished in the bill.

Sections 33 and 34 (pages 43-45). New Mexico-Chihuahua commission — The

boards and commissions subcommittee recommended continuation of the commission on

condition that it not be an expense to the state. The commission is sunsetted later in the bill.

Sections 35 and 36 (pages 45-47). New Mexico-Sonora commission — The boards

and commissions subcommittee recommended continuation of the commission on condition that

it not be an expense to the state. The commission is sunsetted later in the bill.

Sections 42 through 63 (pages 52-80). These sections clean up old labor sections of

law.

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Sections 67 through 70 (pages 82-84). These sections clean up economic development

and patent law sections.

Section 72 (pages 84-87). Spaceport authority created — This section provides for

per diem and mileage at the same rate as state employees.

Section 74 (pages 87-88). Litter Control and Beautification Act definitions — The

boards and commissions subcommittee recommends that the litter control council be abolished.

The amendments to this section conform with that request.

Section 79 (page 92). Sunsets the human rights commission in 2017.

Section 80 (page 92). Sunsets the New Mexico-Chihuahua commission in 2015.

Section 81 (pages 92-93). Sunsets the New Mexico-Sonora commission in 2015.

Section 82 (page 93). Sunsets the state fair commission in 2017.

Section 83 (page 93). Sunsets the spaceport authority in 2017.

Section 84 (page 94). Sunsets the labor and industrial commission in 2017.

Section 85 (page 94). Sunsets the workers' compensation administration in 2017.

Section 86 (pages 94-95). Sunsets the state workforce development board in 2017.

Section 87 (pages 95-96). Temporary provision; transfers — This is a standard

transfer section that includes transfers of the EDD, tourism department, WSD and border

authority to the commerce department. Subsection E of the section transfers everything of the

New Mexico film museum to the cultural affairs department.

Section 88 (page 96). Recompilation — This section recompiles Section 9-15-56

NMSA 1978, which requires certain information to be provided in a law that provides economic

development tax incentives, into the Commerce Department Act.

Section 89 (pages 96-98). Repeal — This section repeals the following:

A. Economic Development Department Act;

B. Tourism Department Act;

C. Intertribal Ceremonial Act;

D. Workforce Solutions Department Act;

E. Small Business Regulatory Relief Act;

F. New Mexico Film Museum Act;

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G. Border Development Act; and

H. the litter control council.

Section 90 (page 98). Effective date — The effective date is January 1, 2011.

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State of New Mexico

Legislative Council Service411 State Capitol, Santa Fe, New Mexico 87501 (505) 986-4600 Fax: (505) 986-4680

Information Memorandum

DATE: January 12, 2011

TO: Government Restructuring Task Force Members

FROM: Jonelle Maison

SUBJECT: DEPARTMENT OF FINANCE AND ADMINISTRATION — SECTION-BY-

SECTION EXPLANATION

Following is a section-by-section explanation of the proposed new department of finance

and administration (DFA) that includes:

(1) creating an executive services bureau to provide administrative services to

small agencies;

(2) moving the purchasing division from the general services department (GSD);

(3) moving the state personnel office (SPO) to DFA;

(4) making the office of education accountability part of a division that oversees

both public school and higher education finance and accountability; and

(5) making necessary amendments to current law.

Any opinions expressed are those of the author and do not necessarily reflect the opinions

of the New Mexico legislative council or other members of its staff.

Note that many of the sections creating a cabinet department are standard sections based

on the Executive Reorganization Act. Amendatory sections that are cleanup without substantive

changes are not discussed.

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Ú Section 3 (pages 2-3). Department created — This section provides the structure of

DFA, with new organizational units bolded:

(1) office of the secretary;

(2) administrative services division, including:

(a) executive services bureau; and

(b) capital outlay planning and monitoring bureau;

(3) board of finance division;

(4) educational finance and accountability division;

(5) financial control division;

(6) local government division;

(7) purchasing division, which includes the management and contracts review

bureau;

(8) state budget division; and

(9) state personnel division.

The secretary has the power to reorganize internally, but a change in statutory divisions

or bureaus must be provided to the legislature for statutory revision; the secretary may not create

new divisions without express authority of the legislature.

Ú Section 4 (page 4). Administratively attached agencies — This section lists the

agencies that are administratively attached, with the new one to DFA in bold:

(1) acequia commission;

(2) state board of finance;

(3) personnel board;

(4) New Mexico community development council;

(5) civil legal services commission; and

(6) land grant council.

Ú Section 9 (pages 11-13). Educational finance and accountability division — This

section specifies the duties of the educational finance and accountability division, which are to

monitor and oversee public school and higher education finances and budgets and to provide an

independent evaluation of how well the two public education systems are performing and how

well the public education department and higher education department perform in holding those

systems accountable to students, taxpayers and citizens.

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Ú Section 10 (page 14). Executive services bureau duties — This section provides that

the executive services bureau shall provide budgeting, recordkeeping and related administrative

and clerical services for small agencies, which are those with 20 or fewer employees or a budget

of $1 million or less.

Ú Section 12 (pages 14-15). General services department created — This section makes

GSD a non-cabinet department (similar to the regulation and licensing department); changes the

makeup of GSD to take out the purchasing division; and conforms the section by adding the state

aviation bureau and the surplus property bureau, which are provided for in other statutes.

Section 13 (pages 15-16). Superintendent appointment — This section converts the

secretary of general services to a superintendent.

Section 16 (pages 21-22). Personnel board powers and duties — This section

removes from the personnel board the ability to promulgate rules, hire the state personnel

director, review budget requests of SPO and liaise with GSD.

Ú Section 17 (pages 22-23). State personnel director qualifications — This section is a

new section of the Personnel Act that provides that the state personnel director must be someone

of recognized character and ability appointed by the secretary of finance and administration

based solely on the director's qualifications and without regard to political affiliation. The

director must have at least a master's degree in human resource management or public or

business administration or a related field and at least seven years' progressive experience in

applying principles, methods and techniques of personnel administration. The section also

requires the director to be confirmed by the senate.

Section 18 (page 23). Personnel director duties — This section deletes the director as

secretary of the personnel board and provides that the director recommend to the secretary of

finance and administration rules to be promulgated.

Sections 23 through 33 (pages 27-40). These sections amend the Procurement Code

and the State Use Act to define the central purchasing office as the purchasing division of DFA

and change responsibilities from GSD to DFA.

Sections 36 through 38 (pages 43-45). Temporary provisions; transfers — These

sections are standard transfer sections. Section 36 transfers functions, money, property,

contractual obligations and statutory references of SPO to DFA. Section 37 provides the same

transfers from the purchasing division of GSD to DFA. Section 38 provides that statutory

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references to the secretary of general services shall be deemed to be references to the

superintendent of general services.

Section 39 (page 45). Repeal — This section repeals the attachment of SPO and the

personnel board to GSD and repeals the governor's residence advisory commission.

Section 41 (page 39). Effective date — The effective date is July 1, 2011.

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State of New Mexico

Legislative Council Service411 State Capitol, Santa Fe, New Mexico 87501 (505) 986-4600 Fax: (505) 986-4680

Information Memorandum

DATE: January 12, 2011

TO: Government Restructuring Task Force Members

FROM: Kim Bannerman

SUBJECT: ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT

REORGANIZATION — SECTION-BY-SECTION EXPLANATION

Following is a section-by-section explanation of the proposed reorganization of the

energy, minerals and natural resources department (EMNRD). The bill moves the department of

game and fish into the EMNRD. The majority of the bill deals with the elimination of the state

game commission and the transfer of the state game commission's authority to the new game and

fish division of the EMNRD. The bill combines the powers and duties of the coal surface

mining commission with the mining commission and then eliminates the coal surface mining

commission. The bill also addresses several of the government restructuring task force's

recommendations relating to boards and commissions dealing with energy, minerals and natural

resources matters. First, it eliminates both the technical advisory committee to the office of

interstate markets and the natural lands protection committee. Second, it sunsets several boards

and commissions that address energy, minerals and natural resources issues.

Any opinions expressed are those of the author and do not necessarily reflect the opinions

of the New Mexico legislative council or any other member of its staff. Note that amendatory

sections that are cleanup without substantive changes are not discussed.

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Section 2 (page 2). Department established. This section adds the game and fish

division to the EMNRD. It also deletes the administrative attachment of the state game

commission to the EMNRD because the state game commission is being eliminated.

Section 3 (page 3). Secretary's powers and duties. This section provides that the

secretary of energy, minerals and natural resources' authority over the department or divisions of

the department can be exempted by explicit statement in statute. This is a standard executive

organization provision. The amendment is necessary because the Water Quality Act requires the

water quality control commission to be exempt from the secretary's authority.

Section 5 (page 4). This section sunsets the New Mexico youth conservation corps

commission in 2017.

Section 8 (page 5). State parks advisory board. This section specifically states that

the state parks advisory board shall not be paid or receive per diem pursuant to a request of the

boards and commissions committee and sunsets the board in 2017.

Sections 10 and 11 (pages 8-10). These sections move control of the department of

game and fish from the state game commission into the new game and fish division of the

EMNRD and move the former conservation services division of the department of game and fish

to the conservation services bureau of the game and fish division of the EMNRD.

Section 17 (pages 13-18). Powers of the game and fish division. This section transfers

the powers of the state game commission to the game and fish division.

Sections 18 through 20 (pages 18-20). Bonding authority. These sections give

bonding authority previously invested in the state game commission to the secretary of energy,

minerals and natural resources.

Sections 21 through 51 (pages 20-59). Game and fish programs. These sections

move the state game commission's authority over the game and fish programs of the state,

including the authority to receive federal funds and enforce penalties, to the new game and fish

division of the EMNRD.

Sections 53 through 59 (pages 61-79). Wildlife Conservation Act. These sections

transfer oversight of the Wildlife Conservation Act, which deals with threatened and endangered

species, from the state game commission to the EMNRD. The game and fish division and the

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secretary of energy, minerals and natural resources both have duties under the act.

Sections 60 through 87 (pages 79-101). Hunting and fishing. These sections transfer

oversight of hunting and fishing activities in the state from the state game commission to the

game and fish division of EMNRD.

Sections 88 through 90 (pages 101-104). Power to acquire land. These sections

provide the game and fish division of the EMNRD with the authority to obtain lands for game

and fish purposes, including eminent domain for rights of way necessary for use of such lands.

These powers previously rested with the state game commission.

Sections 100 through 103 (pages 120-124). Fur-bearing animals. These sections

transfer oversight of the hunting and trapping of fur-bearing animals from the state game

commission to the game and fish division of the EMNRD.

Sections 104 through 109 (pages 124-128). Habitat protection. These sections

transfer oversight of the Habitat Protection Act, which addresses the impact of motorized vehicle

use on land, from the state game commission to the game and fish division of the EMNRD.

Sections 122 through 124 (pages 140-144). Off-Highway Motor Vehicle Act. These

sections amend the act to specify that the game and fish division of the EMNRD subsumes the

powers of the department of game and fish. They also prohibit members of the off-highway

motor vehicle advisory board from receiving per diem at the request of the boards and

commissions committee and sunset the off-highway motor vehicle advisory board in 2013.

Section 126 (pages 144-145). This section sunsets the tree planting advisory committee

in 2015.

Section 127 (page 145). This section sunsets the mining safety board in 2017.

Sections 128 through 133 (pages 145-157). Combining the mining commission and

the coal surface mining commission. These sections combine the powers and duties of the

mining commission and coal surface mining commission. The coal surface mining commission

will be eliminated, leaving the mining commission as the only commission addressing mining

regulations in the Surface Mining Act. It also sunsets the mining commission in 2017.

Section 134 (page 157). This section sunsets the oil conservation commission in 2015.

Sections 137 through 144 (pages 160-167). These sections eliminate the natural lands

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protection committee and transfers its powers and duties to the EMNRD.

Section 145 (pages 167-168). Temporary provision; transfers; references in law.

This section is a standard transfer section. It includes the transfer of:

(1) functions, appropriations, personnel, property and contractual obligations from

the department of game and fish and state game commission to the EMNRD;

(2) functions, appropriations, property and contractual obligations of the coal

surface mining commission to the mining commission; and

(3) functions, appropriations, property and contractual obligations of the natural

lands protection committee to the EMNRD.

Section 146 (page 168). Temporary provision; duties of the state game commission.

This section clarifies that all duties of the state game commission shall become duties of the

game and fish division of the EMNRD, and it states that all the state game commission's rules

will remain in force unless repealed or amended by the game and fish division.

Section 147 (page 168-169). Repeal. This section repeals the sections establishing and

setting forth the duties of the state game commission, and it repeals the sections creating and

setting forth the duties of the coal surface mining commission.

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State of New Mexico

Legislative Council Service411 State Capitol, Santa Fe, New Mexico 87501 (505) 986-4600 Fax: (505) 986-4680

Information Memorandum

DATE: December 15, 2010

TO: Government Restructuring Task Force Members

FROM: Kim Bannerman

SUBJECT: DEPARTMENT OF PUBLIC SAFETY — SECTION-BY-SECTION

EXPLANATION

Following is a section-by-section explanation of the proposed new department of public

safety (DPS). The bill moves the homeland security and emergency management department

and the fire marshal division of the public regulation commission into the DPS. It also moves

oversight of the Enhanced 911 Act from the local government division of the department of

finance and administration (DFA) into the DPS. The bill significantly amends the Enhanced 911

Act to allow the 911 surcharge to apply to new phone service technologies and prepaid calling

cards. It also provides for development of a statewide enhanced 911 system utilizing

technologies provided by the department of information technology (DoIT). The bill also

addresses boards and commissions related to the DPS by: (1) eliminating the crime stoppers

advisory council, mounted patrol board of directors, DNA identification system oversight

committee and intrastate mutual aid committee and transferring their functions to the DPS; and

(2) sunsetting the interoperability planning commission and the state emergency response

commission.

Any opinions expressed are those of the author and do not necessarily reflect the opinions

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of the New Mexico legislative council or any other member of its staff. Note that amendatory

sections that are cleanup without substantive changes are not discussed.

Section 5 (pages 8-9). Purpose of the department. This section adds homeland

security and emergency management functions to the DPS's purpose. With new language

bolded, the section provides that the purpose of the DPS Act is to:

establish a single, unified department to consolidate law enforcement,safety and homeland security and emergency managementfunctions in order to provide better management, real coordination andmore efficient use of state resources and manpower in responding toNew Mexico's public safety and homeland security and emergencymanagement needs and problems and to improve the professionalism of the state's law enforcement and investigativefunctions and personnel and the state's homeland security andemergency management functions and personnel.

Section 6 (page 9). Department created. This section provides the structure of the

DPS, with new organizational units bolded:

A. the New Mexico state police division;

B. the special investigations division;

C. the training and recruiting division;

D. the technical support division;

E. the administrative services division;

F. the motor transportation division;

G. the information technology division;

H. the homeland security and emergency management division;

I. the fire marshal division; and

J. the enhanced 911 division.

Section 7 (pages 9-14). Secretary's duties and powers. Language was added to ensure

that the secretary of public safety is the coordinating official of all departments and agencies and

their employees when emergencies are declared by the governor.

Sections 12 through 18 (pages 23-30). These sections all deal with emergency

situations. The homeland security and emergency management division of the DPS remains the

primary authority and coordinating official when dealing with emergencies in the state.

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Sections 19 through 23 (pages 30-37). These sections eliminate the intrastate mutual

aid committee and transfer its powers and duties to the homeland security and emergency

management division of the DPS.

Section 27 (pages 39-40). This section sunsets the interoperability planning commission

in 2015.

Sections 39 and 40 (pages 60-62). These sections eliminate the mounted patrol board of

directors and transfer its powers and duties to the DPS.

Section 43 (pages 66-67). This section transfers the authority of the crime stoppers

advisory council, which is repealed later in the act, to the DPS.

Sections 44 through 50 (pages 66-75). These sections eliminate the DNA identification

system oversight committee and transfer its powers and duties to the DPS.

Sections 50 through 56 (pages 75-81). These sections move all the fire marshal division

duties from the public regulation commission to the DPS, including the fire protection fund.

Section 57 (pages 81-87). Enhanced 911 Act definitions. This section amends certain

definitions and adds new definitions, including:

A. 911 emergency surcharge — amended to include phone services that use an

internet connection to make and receive calls and other new technology used for phone services;

F. communication service — added to ensure that new technologies used for phone

services are covered by the act;

J. division — changed from the local government division of the DFA to the

enhanced 911 division of the DPS;

K. emergency services internet protocol network — added to the definitions

section to ensure that the act deals with new technology such as internet-based public

communication systems;

L. enhanced 911 system — amended to include new technologies (emergency

services internet protocol network and next-generation 911 systems);

R. interconnected voice over internet protocol service — added to ensure that the

act covers phone services that use an internet connection to make and receive calls; and

T. next-generation 911 technology — allows for the use of new technology

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developed to make 911 systems more efficient and compatible with phone services that are non-

traditional.

Section 58 (pages 87-89). Imposition of the 911 emergency surcharge. This section is

amended to include all new technologies used for phone services, including interconnect voice

over internet protocol service. This amendment will ensure that the surcharge applies to the

users of these new technologies. Also, the section clarifies how to determine if the primary place

of use of the service is New Mexico to comply with federal law.

Section 59 (pages 89-92). Prepaid wireless communication surcharge. This section

enacts a new 911 emergency surcharge for prepaid phone cards. The surcharge is one and eight-

tenths percent of the cost of the prepaid service.

Section 61, Subsection H (page 96). Enhanced 911 fund. This section is amended to

allow money in the fund to be used by the enhanced 911 division, in conjunction with the DoIT,

to develop and provide for a statewide enhanced 911 system.

Section 65 (pages 99-100). Statewide enhanced 911 system. This is a new section

requiring the enhanced 911 division of the DPS to work with the DoIT to develop and implement

a statewide enhanced 911 system. It requires the DoIT to provide the technical infrastructure

needed for the development of such a system utilizing next-generation 911 technology and an

emergency services internet protocol network. In addition, this section mandates that all locally

controlled public safety answering points connect to the statewide system when it becomes fully

operational.

Section 70 (page 104). Sunsets the state emergency response commission in 2015.

Section 71 (pages 104-106). Temporary provision; transfers. This section is a

standard transfer section, and it transfers functions, appropriations, property and contractual

obligations from the homeland security and emergency management department, the fire marshal

division of the public regulation commission and the local government division of the DFA

relating to the Enhanced 911 Act to the DPS. It also transfers the functions, appropriations,

property and contractual obligations of the mounted patrol board of directors and crime stoppers

advisory council, both of which are eliminated by the bill, to the DPS.

Section 72 (page 106). Temporary provision; recompilation. This section moves the

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sections establishing the firefighter training academy and fire marshal division out of the Public

Regulation Commission Act into the DPS Act.

Section 73 (page 106). Repeal. This section repeals the Homeland Security and

Emergency Management Department Act and sections of law creating the crime stoppers

advisory council and the mounted patrol board of directors.

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State of New Mexico

Legislative Council Service411 State Capitol, Santa Fe, New Mexico 87501 (505) 986-4600 Fax: (505) 986-4680

Information Memorandum

DATE: January 12, 2011

TO: Government Restructuring Task Force Members

FROM: Kim Bannerman

SUBJECT: GAMING CONTROL AND HORSE RACING ACT — SECTION-BY-SECTION

EXPLANATION

Following is a section-by-section explanation of the proposed Gaming Control and Horse

Racing Act and necessary amendatory sections. Sections that only include simple language

amendments are not addressed. Any opinions expressed are those of the author and do not

necessarily reflect the opinions of the New Mexico legislative council or other members of its

staff.

The purpose of the bill is to transfer all regulatory authority related to horse racing and

pari-mutuel wagering to the gaming control board. In addition, it attempts to make the licensing

requirements for horse racing and gaming activities more efficient.

Section 1 (page 1). Short title — This section amends the "Gaming Control Act" to the

"Gaming Control and Horse Racing Act".

Section 2 (pages 1-2). Policy — This section states that it is New Mexico's policy to

allow limited and regulated gaming, pari-mutuel wagering and horse racing activities.

Section 3 (pages 2-14). Definitions — This section: adds "pari-mutuel wagering" and

"horse racing" to the defined terms already found in the Gaming Control Act; adds persons

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connected to horse racing to the definition of "gaming employee"; and adds definitions needed

for horse racing and pari-mutuel wagering previously found in the Horse Racing Act, including

"horse race", "horse racetrack", "pari-mutuel wagering", "race meet", "racing season", "racetrack

gaming operator", "racetrack operator" and "simulcast".

Section 5 (pages 14-19). Gaming control board created — This section provides the

structure of the gaming control board, changing the board structure from the previous structure

under the Gaming Control Act. The board is structured as follows:

• seven members (previously four) — all appointed by governor with the advice and

consent of the senate:

• one member with a minimum of five years of previous employment in a law

enforcement agency;

• one member that is a certified public accountant;

• one member that is an attorney;

• two members that are practical breeders of racehorses;

• one owner of a horse racing facility; and

• one public member with experience in business management and financing; and

• the law enforcement, certified public accountant and attorney members all receive a

salary set by the governor and, while on the board, are prohibited from being employed

in any other capacity or receiving compensation for services rendered to any person or

entity other than the board.

Section 7 (pages 20-25). Board's powers and duties — This section adds several

powers and duties related to the regulation of horse racing and pari-mutuel wagering to the

existing powers and duties of the board addressing gaming.

Section 14 (pages 38-41). Licensure and certification — This section sets forth the

types of licenses the board can issue and adds "racetrack operator" and "racetrack gaming

operator" to the list, which already covers gaming activity licenses.

The section also provides for certification of suitability and work permits for both gaming

licensees and horse racing licensees. Due to these amendments, the secondary and occupational

licenses required under the Horse Racing Act are no longer needed. Under the Horse Racing

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Act, secondary licenses were required for key executives or shareholders involved in the

administration of a horse racetrack. Occupational licenses were required for vendors or other

people having access to restricted areas at a horse racetrack or access to pari-mutuel betting

windows. Under the Gaming Control Act, no secondary or occupational licenses were required

for similar individuals. Rather, the person would apply for a certification or work permit. This

section allows the board to issue a certification of suitability or work permit in the situations

previously needing secondary or occupational licenses. It also allows the board to issue one

certification or work permit for a gaming employee that works in both gaming and horse racing.

The certification process is addressed in Section 20.

Section 17 (pages 46-48). License, certification and work permit fees — This section

sets forth all the fees for the different types of licenses, as well as certifications and work

permits. The fee for a "racetrack operator license" is added to the list, which already covers all

gaming licensing fees.

Sections 23 through 25 (pages 64-71). These sections move all the previous Horse

Racing Act provisions governing pari-mutuel wagering, horse race simulcasting and interstate

common pool wagering under the control of the gaming control board.

Sections 36 through 40 (pages 89-97). These sections move all the tax matters

associated with horse racing and pari-mutuel wagering into the new act.

Section 42 (page 98). This section moves the racing suspense account into the new act

and makes the board responsible for the account.

Section 43 (pages 99-104). This section moves the horsemen's commission, a

commission retained by a racetrack gaming operator for a win, place or show in the pari-mutuel

system for remittance to the racing suspense account, into the new act. A portion of the money

is distributed to the New Mexico horse breeders' association, pursuant to Section 59.

Sections 44 through 48 (pages 104-108). These sections move all penalties and illegal

activities related to horse racing into the new act.

Sections 49 and 50 (pages 108-109). These sections move horse racing stewards under

the control of the board and provide for the testing of specimens related to horse racing.

Sections 59 and 60 (pages 117-120). These sections move the horse breeders' awards

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provisions of the Horse Racing Act into the new act.

Sections 61 and 62 (pages 120-122). These sections add the horse racing taxes to the Tax

Administration Act and require the taxation and revenue department to report on the racing

suspense account to the board.

Section 63 (page 122). Temporary provision; transfers — This is a standard transfer

section that includes transfers of the functions, property and contractual obligations of the state

racing commission to the gaming control board.

Section 64 (page 122). Repeal — This section repeals the Horse Racing Act.

Section 65 (page 122). Effective date — The effective date is July 1, 2011. The task

force may want another effective date if it determines the process of moving these two entities

into one will take more time.

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APPENDIX C

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Government Restructuring Task Force Staff Analysesof

Recommendations Regarding K-12 Education

Recommendations derived from the Carruthers Report and the June 21 GovernmentRestructuring Task Force (GRTF) meeting.

Prepared by GRTF StaffLCS, LESC, LFC, DFA and OEA

for July 29-30 meeting

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1. Merge the public education department (PED) and the higher education department(HED). (Carruthers report) (LFC)

This item is part of legislative finance committee (LFC)/department of finance andadministration (DFA) agency analyses and will be reported at a later date.

2. Remove or reduce the small school size adjustment in the public school funding formula. (LFC — Aguilar/Gudgel)

Overview < School size units are included in the current funding formula to compensate districtsfor the increased costs of operating small schools, particularly in rural areas.

Cost Savings < If the school size adjustment is removed, approximately $67.5 million (based on FY2010 data) would be saved or available for reallocation through the formula; if theadjustment is limited to statutorily defined "necessarily small schools", as proposed inOther Options, approximately $29.3 million (based on 2009 data) would be saved oravailable for reallocation through the formula.

< NOTE: An analysis should be done to determine the impact statewide and theimpact on individual districts.

Time Frame< Short-term for statutory change. NOTE: LCS, LESC and OEA staff do not agreewith LFC and DFA staff on time frame. LFC and DFA staff believe therecommendation can be implemented in the FY 2012 budget; LCS, LESC and OEAstaff believe implementation is for the FY 2013 budget.

Advantages

< Eliminates the incentive for schools to create and artificially maintain small schoolsand makes additional funding available for distribution through other parts of thefunding formula.

< A number of districts and charter schools maintain low school enrollment toguarantee that school size adjustment units are generated. As many as 25 districtsoperate separate kindergarten through eighth grade schools housed in the same buildingwith shared administration, teaching staff, instructional support staff and supportservices yet are claimed for formula funding purposes as two separate schools (e.g., aK-5 elementary school and a 6-8 middle school) in order to generate size adjustmentunits. In FY 2009, 77 of 89 school districts and 68 of 75 charter schools statewideclaimed school size units at a cost of approximately $72 million.

Disadvantages< Schools that are truly small (not by design) would not receive additional fundingneeded to defray the increased operation costs that result from the school's small size.

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This could be of concern particularly in rural areas. These same schools might alsosuffer financially if the equation were changed such that the size adjustment calculationresulted in less funding.

< This change may result in an increase in emergency supplemental funding.

Implementation Mechanisms< Amend Subsection A of Section 22-8-23 NMSA 1978 to eliminate the small schoolsize adjustment OR change the formula in statute to decrease the number of schoolseligible for the size adjustment.

< Amend Subsection A of Section 22-8-23 NMSA 1978 to redefine eligibility criteriaas follows: schools must be located in communities with a population smaller than3,000 and located at least five miles from another school offering the same services toclaim size adjustment units.

Other Options< Eliminate charter schools from being eligible for school size adjustment units. Thiswould help address the fact that some charter schools are similar to alternativeprograms, which are not eligible for size adjustment units.

3. Reduce the small district size adjustment in the public school funding formula. (SB 105,School Cost Differential & Program Units, 2010 Regular Session) (LFC — Aguilar/Gudgel)

Overview< Small school size units are included in the current funding formula to compensatesmall districts for the increased costs of operating, particularly in rural areas. Thedistrict size adjustment generates funding for most districts with little regard to the realeffect of student population.

Cost Savings < If the district size adjustment factor is removed, $17.3 million (based on FY 2010)would be saved or available for reallocation through the funding formula.

< NOTE: An analysis should be done to determine the impact statewide and the impact on individual districts.

Time Frame< Short-term for statutory change. NOTE: LCS, LESC and OEA staff do not agreewith LFC and DFA staff on time frame. LFC and DFA staff believe therecommendation can be implemented in the FY 2012 budget; LCS, LESC and OEAstaff believe implementation is for the FY 2013 budget.

Advantages< This eliminates a unit generator that applies to 72 of the 89 school districts andmakes the assumption that most districts are unable to take advantage of economies of

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scale even when districts are located near larger population areas. This changeencourages the possible consolidation of school districts or district administrativefunctions, making additional funding available for distribution through the fundingformula.

< In FY 2010, 72 of the 89 school districts were eligible for district size adjustmentfunding at a cost of approximately $17.3 million. The central offices of a number ofdistricts are located within a few miles of each other and, in one case, within the samecity. While individual communities may want their small districts to functionindependently, it appears to be unfair to other districts for the state to pay for the extraadministrative costs associated with operating these districts.

Disadvantages< Districts that are small and isolated would not receive the additional funding neededto defray the increased operation costs that result from their small size and largerpercentage of administrative overhead.

< This change may result in an increase in emergency supplemental funding.

Implementation Mechanism< Amend Subsection B of Section 22-8-23 NMSA 1978 to eliminate the small districtsize adjustment OR change the formula to decrease available size adjustment.

< Amend Subsection B of Section 22-8-23 NMSA 1978 to redefine eligibility criteriaas follows: school districts could not have more than a total MEM of 3,000 (current lawallows 4,000), including early childhood education, and could not be located less than15 miles from the central office of another school district.

Other Options< Define eligibility criteria differently.

4. Expand the role of the regional education cooperatives (RECs) in providing services to schooldistricts. (LFC — Aguilar/Gudgel)

Overview< Currently, nine RECs are in operation. They are authorized by statute to providetechnical assistance, staff development, cooperative purchasing, fiscal management,administration of federal programs and additional services as may be determined to beappropriate by the regional education coordinating council, which is made up ofrepresentatives of the school districts that make up an REC. Services provided varyamong the nine RECs.

Cost Savings< Cannot be calculated without specifics.

Time Frame

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< Short- to mid-term. Short-term for statutory amendment; mid-term for determiningthe expanded role and implementation issues will be required.

Advantages< May allow for improved delivery of services by centralizing functions andeliminating duplicative work; would encourage cost savings and sharing of bestpractices, especially in rural districts. Unnecessary duplication of services in variousindependently acting school districts may increase the overall cost of running a district,taking resources away from the classroom; RECs provide the ability to consolidateadministrative functions to allow resources to be redirected to other critical needs.

< Local considerations appear to hamper REC effectiveness currently; a change in lawmight improve efficiency in school districts and in the RECs.

Disadvantages< It is not clear that making the proposed changes to current statute will result in anymeaningful improvement to service delivery to school districts. RECs are currentlyauthorized to provide services and do not because their member districts choose not touse them for some of these purposes.

Implementation Mechanism< Amend the Regional Cooperative Education Act to include more services, such astransportation and maintenance, and make it mandatory that REC members use the RECfor certain functions. The act could also be amended to make membership mandatoryand perhaps consolidate REC boards to provide more central oversight.

< RECs are state agencies and, as such, should be subject to the same provisions asother state agencies. To ensure appropriate oversight, amend statute to requirecompliance with the Procurement Code and the Personnel Act.

Other Options< Consolidate smaller RECs to take advantage of economies of scale and reduceoverall REC expenditures, allowing member districts to be better served aseconomically as possible. It is likely that consolidation would also allow RECs toprovide a wider range of services.

< Eliminate general fund support for RECs to make them self-supporting.

< Create another REC for the northwest corner of the state, the school districts of whichhave not seen fit to create an REC.

< Although RECs are really created by school districts, they have been given stateagency status. One option would be to return them to being instrumentalities of schooldistricts.

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< Eliminate RECs and regionalize PED. If PED provided its technical assistance andoversight functions throughout the state, instead of from Santa Fe or Albuquerque, itmight be of more assistance to school districts and charter schools and result inefficiencies to the public school system.

5. Reduce the multiplier in the public school funding formula for the senior year from 1.25 to1.045. (LFC — Aguilar/Gudgel)

Overview< Student attendance in the senior year continues to be of concern with the increasingnumber of programs available for seniors to complete their course of studies. As aresult of programs such as dual credit, distance learning, computer-based learning andcareer technical and work force training, it appears that a large number of seniors arenot present at school for the majority of their senior year. As a result, schools arereceiving funding for students that are not receiving direct services.

Cost Savings< Changing the funding formula multiplier for 12th grade to 1.045 will result inapproximately $14.2 million (based on FY 2010) in savings or reallocation through thefunding formula.

< NOTE: A statewide analysis may be necessary to determine how much time seniorsare physically present in school. A study may also be necessary to determine whatother multiplier should be used.

Time Frame< Short-term for statutory change. NOTE: LCS, LESC and OEA staff do not agreewith LFC and DFA staff on time frame. LFC and DFA staff believe therecommendation can be implemented in the FY 2012 budget; LCS, LESC and OEAstaff believe implementation is for the FY 2013 budget.

Advantages< The reduction in the multiplier for seniors from 1.25 to 1.045 accounts for seniors'reduced time in school.

< The state would not be paying a premium for senior year.

Disadvantages< Funding all seniors at a decreased cost differential based on the assumption that allseniors are less than full-time-equivalent students and are not physically present oncampus decreases funding for those students who are physically on campus andreceiving direct services during the entire day.

< It is unknown exactly how many seniors spend only a portion of each school day oncampus, and, therefore, it is difficult to determine the exact amount of full-time-equivalent funding that districts are receiving for those seniors.

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Implementation Mechanism< Amend Section 22-8-20 NMSA 1978 to decrease the cost differential factor from1.25 to 1.045.

Other Options< Decrease the cost differential factor to some other number.

6. Defer educational retirement board (ERB) contributions by the state for another year. (LCS— Bannerman)

Overview< Prior to 2005, there were concerns about the long-term actuarial solvency of theeducational retirement fund. Minimum industry standards require 80% for the fundedratio and 30 years for the funding period. Actuaries indicated that the retirementbenefits had an infinite funding period and were effectively insolvent in the long term. In 2005, legislation was passed to increase the employer contributions to theeducational retirement fund by 5.25% over seven years (a 0.75% increase per year) torestore the long-term actuarial solvency of the fund. Since 2005, the state contributionhas increased from 8.65% of employees' salaries to 10.9%. Due to the current financialcrisis, in 2010 (SB 91) the legislature delayed the 0.75% increase scheduled for FY2011. FY 2011 would have represented the sixth year of increases if the legislature hadnot delayed the increase until FY 2012. The current suggestion is again to delay the0.75% increase. This would delay the 0.75% increase intended for FY 2011 to FY2013.

< NOTE: Laws 2009, Chapter 127 contains an employee swap of certain employer contributions to various state retirement funds. Specifically, employees must make anadditional 1.5% contribution into their relevant retirement funds until June 30, 2011. Atthat time, the state will take over that 1.5% increase. Unless the date is extended, thestate will have to contribute an additional 1.5% on top of the 0.75% increase delayed bySB 91 in 2010 for a total additional contribution of 2.25%. This would result in anadditional expenditure of $54 million out of the general fund ($36 million for the 1.5%combined with $18 million if the educational retirement fund contribution is notdelayed).

Cost Savings< $18.3 million, including public schools and higher education; $54 million if the datein Laws 2009, Chapter 127 is also amended to extend the 1.5% employee-employerswap.

Time Frame< Short-term — statutory amendment.

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Advantages< Considering the employer contribution for both public education and highereducation, the postponement of this payment provides good short-term benefits for thegeneral fund.

< Assuming normal performance of the fund over time, the delay will have a deminimus impact on the actuarial solvency of the fund.

Disadvantages< Laws 2005, Chapter 273 was enacted to increase both employer and employeecontributions to the educational retirement fund, which became actuarially insolvent bythe end of FY 2004. Continuing to delay the contributions does not help the solvencyof the fund.

< If the fund does not perform well, or has not performed well this past year, delayingthe employer contributions could detrimentally affect the long-term solvency of thefund.

< Presumably, the general fund would have to make up the payment in another year,which means the savings are not recurring and are only short-term.

Implementation Mechanism< Amend Section 22-11-21 NMSA 1978 to defer the additional employer contributionsto FY 2013 and FY 2014.

Other Options< Lower employer contributions to the fund. Section 22-11-21 NMSA 1978 could beamended to lower the amount the state contributes to the fund. For example, theemployer contribution level could be lowered to the 2005 level, which was 8.65%. Doing so would cut the state's budget by around $18 million. However, such a changewould be detrimental to the actuarial soundness of the fund unless a concomitantincrease in the employee contribution was required.

< Increase employee contributions to the fund. HB 270, passed in 2005, raised the employee contribution to the educational retirement fund by 0.30% over four years. The current contribution level of 7.9% was reached in FY 2009 and has remained at thatlevel. In FY 2009, this increase brought in an additional $7.8 million in revenue. Asoriginally proposed, HB 270 raised employee contributions by 1% over four years. Thebill was amended to lower the contribution to 0.30%. If the 1% were implemented, employees would contribute 8.6%. Employee contributions could be raised by 0.70%,to end up at 1%, as originally proposed in HB 270. This would result in an additional$18 million in revenue.

< Change the plan's design for longer-term cost savings for the general fund. Thisoption would require further analysis.

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7. Reduce the number of school districts. (LCS — Maison)

This item is still being researched and will be reported at a later meeting.

8. Modify and/or incorporate three-tiered licensure into the training and experience index. (LFC — Aguilar/Gudgel)

This item is still being researched.

9. Hold a three-day working session, attended by a wide range of stakeholders statewide, toexamine the K-12 education system in detail and to make recommendations for restructuring,cost savings and improved outcomes. (LESC — Harrell)

Overview< The state's K-12 educational system is complex and multifaceted. It comprises not only 89public school districts and nearly 800 district schools, but also a growing number of charterschools (72 in school year 2009-2010, with another nine opening in school year 2010-2011). In addition, charter schools may be authorized by either a local school board or the publiceducation commission (PEC); and those authorized by PEC (21 so far, with several othersunder consideration this interim) are tantamount to school districts. Another factor is the 61New Mexico pre-K programs operating in 29 school districts in FY 2010. Although not part ofthe K-12 education system per se, these programs would likely be affected by any restructuringof the K-12 system. Given this complexity, a multiday working session focused exclusively onK-12 education may be worth considering. As a final point, the government reorganizationduring the 1970s, which produced the executive cabinet system, spent more time than isallotted to GRTF and did not attempt to restructure the K-12 or higher education system.

Cost Savings< N/A; actually may cost money.

Time Frame< Short-term.

Advantages< Such a meeting would provide more time for experts to study the issues surrounding restructuring K-12 education and ensure greater "buy-in" to any proposed reforms.

Disadvantages< A three-day meeting may not be sufficient time to cover the issues surrounding restructuring K-12 education, and, therefore, this option may not be accomplished beforethe final report of GRTF in December 2010.

< May require funding for per diem and mileage costs and other meeting costs.

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Implementation Mechanism< Identify members and schedule a meeting; however, it is unclear on whose authority this

might be done.

Other Options< Introduce a memorial to create a statewide stakeholder group to meet throughout the2011 interim and provide a final report before the 2012 legislative session. However,memorials do not appropriate funds.

10. Make a broader use of IDEAL-NM in providing online courses for students and onlineprofessional development for teachers. (See Sections 22-30-1 through 22-30-8 NMSA 1978, theStatewide Cyber Academy Act) (LESC — van Moorsel/Gerstner)

Overview< In 2007, the LESC-endorsed Statewide Cyber Academy Act was enacted to create astatewide cyber academy. That same year, the legislature appropriated funds to implementIDEAL-NM. Both of these initiatives represent significant steps toward providing NewMexicans with access to online learning resources. Cooperatively administered by PEDand HED, these initiatives aim to:

< provide e-learning services to public schools, higher education institutions and state agencies;

< reduce geographic and other barriers to educational opportunity statewide; and

< increase the computer literacy skills online learners need to participate in a global economy.

Cost Savings< Difficult to quantify.

Time Frame< Could be short-term, contingent on the ability of IDEAL-NM staff to manage anincreased workload.

Advantages< Savings in staff time/travel for teachers participating in professional development.

< Savings also realized by other state agencies for professional development.

< More students would meet the graduation requirement of taking one online course.

< Cyber academy-developed courses may be less expensive than those purchased fromfor-profit vendors.

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< Extra cyber academy course enrollments could provide extra pay for teachers teachingthrough the cyber academy.

< After significant performance issues during the 2009-2010 school year, IDEAL-NM hasa new management team that is trying to address concerns through reorganization, cost-cutting and improved course delivery.

Disadvantages< A cost of $200 per student per course per semester for school districts may be difficult toafford for some school districts experiencing financial hardships. NOTE: A constitutionalquestion may arise if public school students have to pay for their education. Per theStatewide Cyber Academy Act, Section 22-30-5 NMSA 1978, the statewide cyberacademy shall "provide for reasonable and equitable means to allocate the costs of distancelearning courses among the statewide cyber academy, the course providers and the schooldistricts whose students are enrolled in a distance learning course". School districts whosestudents "attend" the statewide cyber academy count those students in their MEM.

< Cost savings may only be realized if cyber academy or online professional developmentparticipation replaces some other operational cost of the school district.

< Past performance gives the perception that IDEAL-NM may not be effective. TheIDEAL-NM e-learning system had significant performance issues during the 2009-2010school year, particularly in the higher education sector where data hosting provided byBlackboard crashed multiple times. To some degree, similar concerns were expressed inthe K-12 sector. These performance questions should be addressed through acomprehensive strategy if expansion of IDEAL-NM is proposed.

< Lack of interest in and awareness of IDEAL-NM offerings.

< Broadband access may continue to be a barrier to using IDEAL-NM in some areas.

< Are there cost implications for professional development for school districts whoseteachers are under a collective bargaining agreement?

< Potential access issues in rural areas.

Implementation Mechanism< Identify or develop quality evidence-based online teacher professional developmentprograms and determine whether they would be cost-effective alternatives to traditionalprofessional development delivery.

< Increase awareness of course and professional development offerings of IDEAL-NM.

< Ensure quality support of e-learning systems by IDEAL-NM staff and contractors;increase ongoing oversight by stakeholders.

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< Identify potential additional roles for RECs in increasing access to and participation inIDEAL-NM.

11. Increase the maximum pupil/teacher ratios (PTRs) in state law. (OEA — Hughes)

Overview< School districts are requesting flexibility during the financial crisis, and one of the areasof concern is the statutory PTRs. While school districts have the ability to seek waivers ofPTRs, at least one superintendent suggested that the waiver process takes time andresources.

Cost Savings< Not easily quantifiable; statutory PTRs are maximums and the number in any particular classtype, school or district is variable.

Time Frame < Medium-term if goal is to change state law. Short-term if goal is to retain status quo andjust increase awareness of waiver request option now in statute.

Advantages < Can reduce the need for capital expansion projects.

< Might reduce the need for hiring additional teaching staff or educational assistants.

< Could reduce the need for purchasing additional educational supplies, furniture, etc.

Disadvantages < An increase in PTR will produce increased workloads for teachers.

< If a higher PTR is not implemented without adequate professional development and priorpreparation for the teacher, the quality of the classroom experience will likely be degraded.

< High PTRs should be avoided in the lower elementary grades (K-3) because of thecritical need for highly effective instructors and teaching methods in early childhoodeducation settings that are enhanced in classrooms with smaller PTRs.

Implementation Mechanism < A mechanism currently exists for waiver of existing statutory PTRs through a formalapplication process made by districts to the secretary. To make a more permanent change,statute will have to be amended via the legislative process and approved by executivesignature.

Other Options< Retain the current statute as is and enhance the general awareness in school districtpersonnel of the option for seeking a waiver for larger PTRs.

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12. Better define whether PED's role is technical assistance or compliance or both. (LFC —Aguilar/Gudgel)

NOTE: This analysis takes a slightly different approach to this question of PED role.

Overview< By statute, PED is required to provide both technical assistance and oversight to schooldistricts, as well as enforce the Public School Code. Most of PED's enumerated duties areregulatory in nature. In the general appropriation act, unlike all other departments, PED isfunded as a single program and the secretary determines how revenue flows to the variousorganizational divisions. In practice, this has resulted in the budgetary emphasis ofprogram over finance and operations; the program side of the department has received alarger share of PED appropriation, resulting in the finance and operations side being short-staffed over time. This has caused significant delays in the flow of funds to districts andPED's inability to provide adequate oversight of districts. The recommended method ofaddressing this problem is to create two financing programs for PED in House Bill 2: (1) afinance program that includes all the divisions under the supervision of the deputysecretary for finance and administration, the office of the inspector general and humanresources; and (2) an oversight program that includes all other PED divisions.

< NOTE: This option would address financial oversight and compliance, though it mightnot appropriately address program oversight.

Cost Savings< This is not a cost-savings measure but rather an efficiency measure.

Time Frame< Short-term by PED restructuring its budget request. If the budget request is not restructured,the legislature could force restructure through House Bill 2.

Advantages< This proposal should result in the finance division being funded and staffed properly to allowthe division to meet its statutory charge. PED remains the only department that does not havemultiple programs. Creation of a finance program within PED budget, including the inspectorgeneral and human resources, will result in a better staffed and funded finance division, quickerflowing of federal funds to districts and increased oversight from the inspector general.

Disadvantages< Reduces the secretary's flexibility to move funds and staff between operating units.

Implementation Mechanism< Create the two programs in the budget process, culminating in House Bill 2 funding byprogram.

< Work with PED and DFA to create two programs in PED's FY 2013 budget request.

Other Options< Move all finance functions to DFA.

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13. Use performance contracts to define charter school performance in terms of accomplishingthe goals of the charter, together with clarifying the process for closing charter schools that donot meet their performance goals. (LESC — Harrell)

Overview< Current law prescribes the contents of the charter, to which both the charter schoolapplicant and the authorizer agree.

Cost Savings< Not quantifiable; the value of the recommendation is the assurance that the state isfunding effective charter schools.

Time Frame< Short-term for statutory changes; longer-term for authorizers and charter schools todetermine performance measures, negotiate contracts, implement and evaluate.

Advantages< Performance goals would be spelled out over a set period, perhaps five years, withannual measures. Failure of the charter school to meet those measures and goals wouldresult in closure of the school, thereby ensuring that the state is not funding ineffectualcharter schools.

< New Mexico would be following a common practice nationwide. According tosurvey results received by the national association of charter school authorizers:

< 90% of large authorizers — those that authorize 10 or more schools — signformal contracts with the charter schools they oversee, as do 98% of responding districtauthorizers; and

< in those instances where performance contracts are not required, one reason isthe absence of such a requirement in the state's charter school legislation.

< Charter schools could serve as pilots for the efficacy of performance contracts. Ifsuch contracts are successful, the system could be replicated in traditional publicschools.

Disadvantages< The performance contract would be another document in addition to the charter itselfand the newly required reports during the planning year.

< A separate performance contract may be redundant, or it may be difficult todistinguish between the existing provisions and those of the performance contract,because:

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< the approved charter application is already considered a contract between thecharter school and the chartering authority; and

< a charter may already be suspended, revoked or not renewed for a materialviolation of the conditions, standards or procedures in the charter.

Implementation Mechanism< Amend the Charter Schools Act to:

< require a signed performance contract between the authorizer and the charterschool;

< specify the contents of the contract and the consequences for meeting or notmeeting the terms; and

< delineate a process for closing a charter school that fails to meet the terms (orwhat is considered enough of the terms) and for reassigning the students to otherschools.

< Amend the existing provisions for suspending, revoking or not renewing a charter.

< NOTE: Drafting effective legislation will require research and should be reviewedby stakeholders.

Other Options< The Charter Schools Act could be amended to require that performance goals andmeasures be included in the charter.

14. Extend the use of performance contracts to traditional public schools. (LESC — Harrell)

Overview< The performance of traditional public schools is under the purview of their localschool boards, subject to requirements in state and federal law. Like charter schools,they are accountable to the state under the Assessment and Accountability Act for theirsuccess or failure to make adequate yearly progress. The act provides progressiveconsequences for schools that need improvement or corrective action, leading, ifnecessary, to restructuring the school by converting it to a charter school, replacing allor most of the staff as allowed by law, turning over management of the school to PEDor making other governance changes.

Cost Savings< Not quantifiable; the value of the recommendation is the assurance that the state isfunding effective traditional schools.

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Time Frame< Short-term for statutory changes; longer-term for the state, school districts andschools to determine performance measures, negotiate contracts, implement andevaluate.

Advantages< Traditional public schools would have the same kind of accountability as charterschools, with the same additional consequences for failure to satisfy the performancecontracts.

< Policymakers, taxpayers, parents and children would know whether a school isproviding quality educational programming.

Disadvantages< Because the state is constitutionally required to provide a free public education to allchildren of school age, the closure of traditional schools is problematic. The state andschool districts will have to provide an alternative for the students who are beingdisplaced, and policymakers have to determine what that alternative will be pursuant tostate and federal law. One question has always been, where will the new personnelcome from?

< Because traditional public schools do not have the same flexibility or autonomy ascharter schools, it may be unfair to apply the same kind of performance measures tothem unless the law is changed to give them autonomy.

< Giving traditional schools autonomy usurps the authority of local school boards. Autonomous traditional schools are, essentially, charter schools.

< In some small districts, there may not be another school that students from the closedschool could attend.

< Determining performance measures, negotiating contract provisions andimplementing and evaluating performance will require significant investments of timeand money.

< The performance contract could require that PED take over a failed district school,but the department currently lacks the resources to do so.

Implementation Mechanism< Amend the Public School Code to:

< require that each traditional public school sign a performance contract with itslocal school board;

< specify the contents of the contract and the consequences for meeting or notmeeting the terms; and

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< delineate a process for closing a traditional public school that fails to meet theterms (or what is considered enough of the terms) and for reassigning the students toother schools.

< NOTE: Drafting effective legislation will require research and should be reviewedby stakeholders.

Other Options< Create "rapid response teams" made up of educational mentors and experts inteaching and school administration to provide technical assistance and oversight forfailing schools under the current Assessment and Accountability Act before the schoolsprogress to corrective action. The drawback of this option is the cost — and the lack ofexperts in the state who are not otherwise employed.

15. Implement "smart caps" to facilitate the replication of successful charter school models. (LESC — Harrell)

Overview< According to the New Mexico coalition for charter schools, which made this proposalto LESC during the 2009 interim, smart caps are a means of providing "accountablereplication of successful charter schools" by basing growth in the number of charterschools on proven quality rather than an arbitrary number. As explained in a recentanalysis by Education Sector1, states with smart caps would remove any limit on thereplication of schools that have demonstrated "outstanding gains for students", asdetermined by the state; at the same time, states would impose a cap on the number ofnew schools with no proven record of success, based primarily on the capacity of theauthorizer to oversee charter schools. (In New Mexico, the authorizer is either a localschool board or PEC.) Smart caps, Education Sector analysis further explains, are amore reasonable alternative to the largely arbitrary numerical caps in place in moststates' laws, which "fail to differentiate between good schools and lousy schools andbetween successful charter school authorizers and those with a poor track record . . .".

Cost Savings< N/A.

Time Frame< Long-term. PED would have to identify successful, i.e., effective, charter schoolmodels, preferably models from New Mexico experience. Identification would have toinclude an assessment of what makes the model effective and whether the model wouldwork in the proposed location. There may be proven models in urban settings thatcould not be replicated in a rural environment, for example. Replication would dependon whether there were qualified applicants to operate the charter school.

1Education Sector is a self-described nonprofit, nonpartisan, independent education policy think tankdevoted to developing innovative solutions to the nation's most pressing educational problems.

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< NOTE: May require statutory changes, particularly if the idea is to convert existingtraditional schools into charter schools.

< NOTE: State law does not allow the state, a school district or a charter school toenter into management contracts with private entities for the management of a publicschool or a school district subject to corrective action and, therefore, subject to beconverted to a charter school. (Subsection L of Section 22-2C-7 NMSA 1978)

Advantages< The likelihood of new charter schools being successful/effective should be increasedif based on a proven model or mentored by a successful school.

< Any caps on the number of new charter schools would be based on experience ratherthan an arbitrary number.

< Charter management organizations might be encouraged to operate in New Mexico.(Note statutory limitation on private management contracts.)

< Proponents argue that a provision in law to replicate successful models might attractprivate funds to support charter schools. That would be an advantage, but it might beless likely in a state like New Mexico than locales like New York or Chicago, wherethat has occurred.

Disadvantages< What works in one district or community may not work in another.

< Relying too heavily on successful models may tend to discourage true innovation. This point is ironic, but valid.

< Nonprofit charter management organizations might be encouraged to operate in NewMexico, although it is worth noting that "nonprofit" does not mean the organizationdoes not make money; the state might want to consider carefully whether it wants topay out-of-state companies to run New Mexico charter schools.

< Unless the criteria in law were quite explicit, determining what constitutes asuccessful model may be problematic.

< New Mexico data do not show that charter schools are necessarily superior totraditional public schools or necessarily provide a better education to their students.

< Charter school applications have never come close to reaching the statutorymaximum number in any year.

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Implementation Mechanism< Amend the Charter Schools Act to define the term "smart caps" and to prescribe aprocess for replicating successful models — also to define or describe successfulmodels.

< Review and possibly amend the provisions in the Charter Schools Act related toapplications in school districts with fewer than 1,300 students and to the number ofcharter schools allowed per year or in any five-year period.

< A review of other provisions in law, for example, Subsections L and R of Section22-8B-4 NMSA 1978, may also be needed.

Other Options< None identified.

16. Place a temporary moratorium on the authorization of new charter schools. (DFA —Marcelli)

Overview< This proposition was presented to GRTF in response to a request forrecommendations for restructuring. The concern expressed is that new charter schoolsdilute funding for all existing traditional and charter schools in a time when publicschool support is being cut.

Cost Savings< Testimony presented at the July LFC meeting indicated cost savings can be estimatedat $6 million to $10 million a year. The legislature would have to decide if it takes thegeneral fund savings or reallocates the savings to the state equalization guarantee(SEG).

Time Frame< Short-term — legislative action required. Legislature will determine how long themoratorium would be in place.

Advantages< Having fewer schools means better funding for existing schools.

< Lowers the number of schools eligible for small school size adjustment. A charterschool can limit the number of students it accepts to receive additional funding in SEGdistribution. This is not an option available to public schools, which must accept alleligible students.

< Reduces the amount of support (fiscal/administrative) that a school district providesto its chartering partners. Several news articles have been published recentlyconcerning financial practices of charter schools and the lack of accountability inreporting to the central office of the partnering school district. A moratorium on new

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charter schools will limit the amount of training/support necessary from the centraloffice to its affiliates.

Disadvantages< Limits the ability of parents/guardians to choose new education opportunities forstudents. Charter schools provide more education options.

Implementation Mechanism< Amend the Charter Schools Act to provide for a temporary moratorium.

Other Options< None indicated.

17. Reduce both the number of tests given to students and the amount of time spent on testing,perhaps retaining only those tests that are required by federal law or that demonstrate clearinstructional value. (LESC — Maestas; LCS — Maison)

Overview< In a memorandum dated February 9, 2010, Secretary of Public Education VeronicaGarcia informed superintendents, charter school administrators and state educationalinstitution administrators that certain tests may be exempted in FY 2011 (seeattachment).

Cost Savings< Quantifying will require further research.

Time Frame< Currently operative.

Advantages< A reduction in the number of tests saves teachers and students time and saves schooldistricts money.

< Allows more time for instruction.

Disadvantages< The legislature continues to request, and at times require, public school performanceand other data. Data-driven decision-making requires the collection of data. Thesuspension of some testing will result in data "holes" in longitudinal data, which mayimpair decision-making.

< If the legislature considers tying teacher evaluations to student performance, andmaking tenure or salary decisions based on those evaluations, student growth will haveto be demonstrated. Testing is one important measure of both student growth andstudent performance.

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< Short-cycle assessments are used by teachers to assess where students are in a givensubject during the school year. The information gleaned from the assessments is usedto make instructional decisions. Without the assessments, student success may behampered.

< College readiness assessments, part of high school redesign, are supposed to be usedto determine what remediation a student needs before the student leaves high school. Remediation in high school is much cheaper than remediation in college.

Implementation Mechanism< A PED memorandum to school districts extending the exemption provided by PED for FY2011. If the legislature wishes to extend temporarily or permanently by statute, legislativeaction is necessary in the 2011 session.

Other Options< None indicated.

18. Implement a statewide five-mill property tax levy for public education to supplementgeneral fund. (LCS — Maison)

Overview< This recommendation began as part of revenue possibilities to fund the new fundingformula. In 2008, House Joint Resolution 10 was introduced by RepresentativeLuciano "Lucky" Varela. The constitutional amendment proposed to amend Article 8,Section 2 of the constitution of New Mexico to increase the millage limitation from 20to 25 mills. The additional five mills would be imposed statewide and distributed topublic schools through the state's public school fund.

Cost Savings< The DFA economist estimated revenue of approximately $261 million in FY 2010. That was before values fell in 2009-2010, so the estimate would have to be revised.

< See Other Options for other revenue enhancements.

< NOTE: All revenue estimates on these recommendations should be re-estimated.

Time Frame< Mid-term; requires a constitutional amendment and implementing legislation to makethe public school fund a nonreverting fund.

Advantages< Millage would be collected statewide to help pay for public education. The moneywould be segregated in the public school fund for distribution to public schools throughthe funding formula. Currently, the state does not receive any property tax revenue(other than assessments to pay general obligation bonds); the constitutionally allowed20 mills are divided primarily between municipalities and counties. School districts

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may impose a .5 mill levy for operations.

< The idea is for the millage to supplement, not supplant, general fund revenue forschool funding.

Disadvantages< Voters might not approve the required constitutional amendment. New Mexicanshave a particular distaste for property tax as a governmental revenue source; however, schools may be an exception to that general rule.

< Revenue from this source would not begin until the 2013 property tax year.

< It is almost impossible to ensure that the general fund effort would be supplemented,not supplanted. The legislature can always end up taking credit for the millage revenue.

< Making the public school fund nonreverting may have consequences for calculatingthe state's annual operating reserve because money in the fund would not revert.

Implementation Mechanism< Pass a constitutional amendment to amend Article 8, Section 2 of the constitutionof New Mexico.

< Pass an amendment to Section 22-8-14 NMSA 1978 to make the public schoolfund a nonreverting fund.

Other Options< Consider other funding formula task force revenue sources:

< increase the property tax valuation from 33.3% to 40% (Article 8, Section1 of the constitution of New Mexico). Requires a companion bill to change thestatutory property tax rates for counties, municipalities and school districts.

Revenue: Approximately $177 million in general fund revenue andapproximately $59 million in direct school district revenue in FY 2010. Again,based on assumed valuations before the crash.

< increase the distribution of the land grant permanent funds. NOTE: The recession affected the value of the land grant permanent funds

and will negatively affect income for the beneficiaries in the next few years. Distributions are based on the funds' five-year average market value.

Revenue: In 2008, at 6.5%, the increase was expected to be approximately$103 million in FY 2013 (total distribution). Other percentage increases wouldgenerate other estimates.

< equalize the oil and gas emergency school tax at 4% on all productssubject to the tax. (Currently, oil and carbon dioxide are taxed at lower rates thannatural gas.) To make the revenue applicable to schools, legislation would have to

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provide for a distribution of some percentage (the funding formula task forcerecommended 12.5%) of the net receipts attributable to the tax to the public schoolfund.

Revenue: Approximately $29 million in FY 2013.

< equalize the oil and gas emergency school tax and increase the tax by 1%and swap out the increase for a decrease in severance tax. The option is neutral fortaxpayers.

Revenue: Generates approximately $101 million for school funding in FY2013, with a corresponding reduction in severance tax income.

< remove yield control on property tax for school districts.Revenue: Approximately $6 million in general fund and $2 million in

direct school district revenue in FY 2013.

< Revert the SEG and the public school fund to the state school support reserve andchange the law to allow the money to be used for school shortfalls. (Sections22-8-25 and 22-8-31 NMSA 1978)

< Other revenue options could be explored at the direction of the task force.

19. Expand the use of electronic formats in (1) school business applications like contractsand memoranda of understanding; and (2) educational applications like online courses andtextbooks or other resource material.

< Secretary Garcia reported to GRTF that PED is already using electronic formatsfor many applications. She did not identify any statutory impediments to electronicformats for business applications. Educational applications are limited bypublishers and school computer resources.

20. Examine the related services (ancillary) multiplier of 25 in the public school fundingformula to determine whether a lower multiplier would suffice. (LESC — van Moorsel)

Overview < The funding formula currently funds special education personnel in approvedancillary programs by multiplying the number of FTE personnel by the costdifferential of 25.0.

Cost Savings< During school year 2008-2009, there were 1,956.04 ancillary FTEs statewide. Multiplying by 25 generates 48,901 units (excluding multiplication with the trainingand experience). At a final unit value of $3,871.79, this represents approximately$189.3 million in program cost.

< To illustrate potential cost savings, a reduction in the factor from 25 to 24 wouldhave reduced the units generated by 1,956 units to 46,945 and reduced the funding

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by approximately $7.6 million, to approximately $181.8 million.

Time Frame< Short-term for legislative action; however, the study will take time, perhaps aninterim or longer, depending on resources provided for the task.

Advantages< An examination of current use of the ancillary multiplier statewide couldgenerate important information related to the costs and uses of ancillary personnelstatewide, including the cost of ancillary services statewide, and which areasdisplay the greatest needs for such personnel.

< If the study determines that the current multiplier generates too much funding forancillary staff, a reduced multiplier could save the state money or lead to a moreequitable distribution of SEG dollars that more accurately reflects districts' costs ofproviding programs.

< A change in the multiplier could bring the multiplier in line with the actual costof ancillary staff.

< Ancillary staff could potentially be shared among districts, possibly facilitated byRECs.

Disadvantages< Such a study may require legislation, as well as significant time and financialinvestment.

< As school funding is being reduced, the elimination or reduction of formulafactors will make it even more difficult for local school boards to develop budgetsand provide statutorily required and community-requested educationalprogramming.

< How would districts budget the cost of ancillary FTEs if they share the cost forsuch staff?

< How can districts meet the cost of ancillary personnel if students requiringancillary services transfer into a district that has not budgeted or received funds forsuch staff?

Implementation Mechanism< Recommendations resulting from the examination of the ancillary staff factormay require statutory or regulatory changes.

Other Options< Implement and fully fund the proposed funding formula.

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21. Suspend all new public school construction for a specific period. (LFC —Aguilar/Gudgel)

Overview< The January 2010 public school capital outlay council financial plan forecastindicated that project funding needs would exceed public school capital outlaybudget availability in the July-September 2010 time frame by about $30.8 million. The council has suspended new construction awards during FY 2011 as a result ofpossible insolvency. This item discusses extending the solvency of the publicschool capital outlay fund.

< NOTE: Public school capital outlay is funded through issuance of supplementalseverance tax bonds, which are dedicated to that purpose. Money in the severancetax bonding fund not used for bonding is credited to the severance tax permanentfund.

< NOTE: The state is still under court supervision re the Zuni lawsuit.

Cost Savings< There is no, or very little, general fund money used for public school capitaloutlay. The recommendation is less about savings and more about maintaining thesolvency of the fund.

Time Frame< Short-term for legislative action; term of moratorium would be decided by thelegislature.

Advantages< Suspension of new construction will eliminate the possibility that the fund willnot maintain sufficient balances to meet funding obligations for already-approvedand awarded projects. Shortfalls could result if anticipated supplemental severancetax revenues fail to materialize at anticipated levels.

< Current statute requires that all charter schools be in publicly owned buildings by2015. This requirement is expected to consume a large part of public school capitaloutlay funding year-to-year for the foreseeable future to meet the statutory deadline,thus reducing funds available for other projects. The proposed delay would allowalready awarded projects to be completed.

Disadvantages< Since the inception of the public school capital outlay program, buildingconditions statewide as measured by the New Mexico facility condition index(NMCI) have improved significantly. At the start of the program, the statewideNMCI stood at 70%, meaning that most of the building construction was forreplacement of existing facilities. At present, the NMCI stands at 30%, reflectingconstruction activities focused on renovation of existing spaces. Depending on the

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length of time construction is suspended, it is expected that the NMCI would likelyincrease, requiring increased supplemental severance tax bond proceeds to returnthe NMCI to pre-suspension numbers.

Implementation Mechanism< Awarding funds for public school capital outlay projects is not mandatory, so thecouncil could implement a policy consistent with suspending all new schoolconstruction.

< Amend the Public School Capital Outlay Act to suspend all new schoolconstruction for a specified time period and suspend new awards.

Other Options< Leave the decision to suspend new school construction up to the council orrequire larger projects to be phased if possible, resulting in smaller awards.

< Use senior severance tax bonds as a funding source for the public school capitaloutlay fund so projects will not be delayed.

22. Examine the fiscal impact of existing charter school facilities in terms of lease payments,improvements and the creation of an additional infrastructure beyond that of schooldistricts. (LFC — Aguilar)

This item is still being researched.

23. Eliminate the categorical restrictions to allow school districts more flexibility with theirbudgets.

< NOTE: Using categorical appropriations for operational expenses would disequalizethe public school funding formula and may result in the state not meeting the disparitycalculation for impact aid.

24. Provide incentives for districts to save money, perhaps by raising the cap on cashbalances. (DFA — Marcelli)

Overview< Until 2003, school districts were allowed to retain cash balances to plan forextraordinary expenses like opening new schools or paying for expensive instructionalmaterials adoptions. This statutory change resulted in some districts having to resort toemergency supplemental funding. With the current system, there is no incentive for aschool district to save money. School districts may keep up to 5% of their operatingbudget in cash balances and the remainder reverts to the general fund. In the past ($16.4million in FY 2004 and $11.6 million in FY 2005), the SEG appropriation took credit forschool district cash balances.

Cost Savings

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< None to the state, at least not directly. There may be some savings in the long termas

districts no longer need emergency supplemental funding.

Time Frame< Short-term — statutory change required.

Advantages< Allowing a school district to keep, rather than revert, cash balances in excess of 5%will provide an incentive to conserve cash balances rather than to expend budget in orderto avoid reversions. Structuring higher cash balance thresholds could assist districts asSEG cuts materialize in the current and subsequent fiscal years.

< In the long run, some school districts may be taken off the emergency supplementallist.

Disadvantages< This change reduces the amount of reversions the state uses for solvency purposes.

Implementation Mechanism< Statutory changes will be required for implementation.

Other Options< Status quo.

25. Make school district cash balances more visible. (LESC — Maestas/Gerstner)

Overview< This proposition would allow the general public to review and compare budgetedoperational fund cash balances approved by the secretary of public education andreported to the LFC, as required by current law (Section 22-8-41 NMSA 1978).

Cost Savings< N/A.

Time Frame

< Mid- to long-term if rulemaking is required. Rulemaking is always a time-consuming

effort.

Advantages< Can provide oversight agencies and the public with a better picture of the currentfinances of a school district or charter school, especially if emergency funding isrequested.

< Allow for cash balance trends to help identify possible improvements in school

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district or charter school spending practices.

Disadvantages< Transparency may result in the state "sweeping" or taking credit for appropriationpurposes.

Implementation Mechanism< Statutory changes required.

Other Options< None identified.

26. Implement the proposed public school funding formula: (a) in full with sufficientfunding; (b) phased in over a period of three years; or (c) in piecemeal fashion withincremental funding. (LCS — Maison)

This item is still being looked at; it may require a contract with American institutes forresearch (AIR), which may be difficult with required budget cuts.

27. Examine the paperwork burden placed on school districts and charter schools in aneffort to streamline to reduce duplication or to eliminate unnecessary paperwork. (OEA —Hughes)

Overview< Anecdotal wisdom says that the state requires too much paperwork for school districtsand charter schools. The proposition would either bear out the anecdote or not; if so, itasks for a review of paperwork flow in districts and charter schools and asks thedepartment to make adjustments as necessary to improve efficiency.

< NOTE: While this analysis is directed at PED requirements, there may be other stateagencies that require paperwork from school districts and charter schools, e.g., thedepartment of environment, construction industries division of the regulation andlicensing department and energy, minerals and natural resources department (energysavings program).

Cost Savings< Unknown.

Time Frame< Depending on scope of the project, the time frame can be either short-term, three tosix months, if only a handful of districts are reviewed, or long-term, up to 18 months, ifall districts are reviewed and processes are eliminated, streamlined or automated wherepossible. In any case, all current report and filing requirements of PED to the schooldistricts/charter schools need review to inventory all reports currently being requestedand identify where redundancies in collection, obsolescence of reports or lack ofnecessity in reporting exist. A work group composed of PED and district staff will need

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to be formed to coordinate work and decision-making.

Advantages < Such an effort will produce overall greater efficiencies in administrative operations indistricts and PED.

< Increased administrative efficiencies can produce attendant cost reductions.

< If the study includes federal paperwork requirements, PED can consider piggybackingor aligning its reporting requirements, thus eliminating partial or complete duplication.

< Examining administrative systems for streamlining, reducing duplication andeliminating paperwork can help identify any number of improvements in processescurrently in place and in use. Such efficiencies support district and state efforts to domore with less, an important objective not only in the current lean economic times but atany time. These efficiencies make for good management in general.

Disadvantages < If such an effort to streamline, reduce duplication and eliminate paperwork is to be

school level will likely produce mediocre results.

< A complete inventory of reports currently required along with the data sources used tocomplete those reports will have to be made. This poses a potentially intensive level ofstaff involvement and commitment at both the state and district level. PED will have toprovide the leadership on this effort that will also need to include the cultivation ofcommitment and buy-in at the 89 districts for it to be successful.

< A study of this magnitude will likely take several months to complete, a potentialdetriment to successful execution of the effort.

< Automation of tasks may require up-front expenditures to realize long-term cost andtime savings. With little or no discretionary funding currently available, such changesmay be difficult to justify in the short term.

Implementation Mechanism < To be successful, some form of coordinating body will need to be developed, eitherthrough a memorial or a memorandum of agreement between PED and thedistricts/charter schools. In addition, funding for the coordinating body will need to besecured, possibly through state funds or a third party; however, the restrictions now inplace on state funds make the possibility of securing this support unlikely.

Other Options < To keep costs contained, an alternative approach that focuses on a small, medium andlarge district and one or two charter schools may be sufficient to identify whereefficiencies in paperwork may be realized. Assuming that the various districts arerequired to report on similar or identical matters, this approach could be pursued with

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the findings to serve as a template for general changes across all districts.

< Rephrase the proposition to recommend that all operations districtwide and school-wide be reviewed to improve work flows, reduce redundancies and increase overallefficiencies.

28. Place the financial oversight of school districts and charter schools with DFA rather thanPED. (DFA — Hadwiger/Marcelli)

Overview< The public school finance division of DFA was created in 1957 to advise and consultwith the superintendent of public instruction. In the 1977 reorganization, the divisionwas moved to the educational finance and cultural affairs department. In 1980, thedivision was again placed under DFA. It underwent a name change, to the office ofeducation, in 1983. In 1988, all powers and duties of the office of education weretransferred to the state department of public education. In 2003, PED was created in theconstitution as a cabinet-level department, answerable to the governor instead of the oldschool board, and the school board was converted to the largely advisory PEC. Per theconstitutional provision, the secretary of public education exercises all functions relatingto the distribution of school funds and financial accounting for public schools. Thisproposal would revert financial control back to DFA.

Cost Savings< Probably no savings; this is an efficiency and oversight proposal.

Time Frame< Long-term in that it requires a constitutional amendment, which would go on the 2012ballot. Enabling legislation would be required, but that could be passed by thelegislature at the same time as the resolution and made effective upon certification by thestate canvassing board that the people had approved the constitutional amendment.

Advantages< DFA oversight could enhance available financial expertise in this area and reduce theopportunity for co-optation of PED staff by stakeholders.

< The move to DFA would include the integration of SHARE and operating budgetmanagement system (OBMS), which would lead to greater transparency and betteroversight by requiring school districts to voucher/perform payroll functions throughDFA. The merger of financial data will provide for enhanced reporting.

Disadvantages< Office space and staffing issues will likely result from the transfer of school finance toDFA.

< DFA would become more deeply involved with education policy. This is not directlyaligned to DFA's central financial management mission, which is "to provide sound

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fiscal advice and problem-solving support to the governor, provide budget direction andfiscal oversight to state agencies and local governments so as to ensure a positive impacton the daily lives of all New Mexico citizens and ensure every tax dollar is spentwisely".

< Placing public school finance at DFA could create internal conflicts of interest as oneDFA unit (capital outlay or budget division) might oversee activities of another unit(public school finance).

< If the intent of the integration of SHARE and OBMS is to require local districts tovoucher/perform payroll functions through DFA, then considerable FTEs and otherresources would be needed in DFA's financial control division to ensure accountabilitystandards.

Implementation Mechanism< If the constitutional amendment passes, Section 9-6-3 NMSA 1978 would be amendedto create the new division in DFA. Chapter 9, Article 24 NMSA 1978 and the PublicSchool Code would also need amending to change the responsibility for K-12 financialactivities from PED to DFA.

Other Options< Increase resources to the school budget and finance analysis bureau, office ofinspector general and other monitoring functions of PED. (See Item 12.)

29. Review public school transportation to identify possible cost-saving measures, withparticular attention to planning more efficient bus routes. (LESC — Gerstner/van Moorsel)

Overview< In a 2008 letter to LESC, PED recommended that the legislature form a task force tostudy issues related to public school transportation. PED noted that the last study hadbeen conducted in 1994, at which time the legislatively appointed task forcerecommended that a study of public school transportation be conducted at least onceevery 10 years. During the 2009 session, legislation was passed to create such a taskforce to examine:

< the statutes, constitutional provisions, rules and court decisions governingpublic school transportation in New Mexico, including those provisions related to thetransportation funding formula;

< the personnel costs to school districts and school bus contractors;< the costs of fuel, equipment and maintenance; and< the administration of the public school transportation program.

However, the governor vetoed the legislation.

Cost Savings< Unable to calculate without a study.

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Time Frame< Short-term for enacting legislation to create a task force; long-term for the study.

Advantages< Such a review would be an opportunity to examine:

< more efficient bus routes; < funding of fuel costs to respond better to changes in the price of fuel; and< the bus and equipment payment structure for school bus contractors.

State law currently requires the state to pay for contractor-owned buses using rental feesover a five-year period; however, state law also allows for a school bus to be used over aperiod of 12 years.

Disadvantages

< Would require an independent review, which would require state resources.

Implementation Mechanism< Such an examination would likely need legislation and an appropriation to create a task force to conduct the study.

Other Options< Fund the use of the public school facilities authority geospatial information system (GIS) to identify possible improvements to make bus routes more efficient.

30. Revise the nine teacher competencies in the current teacher evaluation system to placemore emphasis, and more consequences, on student growth. (OEA — Hughes)

Overview< The national movement toward tying teacher evaluations to student growth has foundan advocate in the Obama administration. The race to the top grant program clearlyindicates a preference for states to undertake teacher quality reforms. This proposition ispart of that debate.

Cost Savings< N/A.

Time Frame< Because the nine competencies have statewide impact related to teacher performance,evaluation and contracts, a work group composed of various stakeholders, includingunion representatives, charter schools, school and district administrators and universityand agency staff, will need to be formed to guide the consensus-building. A term of atleast six months will need to be put into place to accommodate meetings andnegotiations for the changes.

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Advantages < Providing a means of determining whether a student achieves measurable growth overthe course of an academic year and, if not, identifying ways teachers may improve theirperformance is a valid aspect of teacher and principal evaluation.

< Teacher effectiveness has long been recognized as the single most important factor instudent academic performance. Having this effectiveness reflected in terms of studentacademic achievement can provide a means of building an incentive structure or helpingidentify individuals who could be enticed to move to schools deemed high-need. It mayalso add in building public good will.

< Implementation would align New Mexico to wider national trends in teacher andprincipal evaluation both at the federal and other state levels.

Disadvantages < New rules will need to be developed for monitoring student growth that take intoaccount the wide differences in students and schools; for example, the differencesbetween students with special needs and those in gifted programs.

< Over-emphasis or -reliance on any one measure for determining teacher or principaleffectiveness must be avoided to ensure that a fair and balanced evaluation system ismaintained. This is especially true with use of the standards-based assessment, whichprovides a rather blunt means of assessing teacher effectiveness.

< Any changes made to the way that teachers or principals are evaluated will need to benegotiated with the teacher unions or individuals in the case of principals or teachers incharter schools.

< Students may fail to perform even with the best of teachers and teaching methods andprincipals because there are several factors that exist outside the control of the teacher,principal or school, such as poverty, mobility, domestic violence, abuse or substanceabuse in the household. Unless adequate safeguards are built into the evaluation systemto protect teachers and to mitigate against such contingencies, the evaluation system willbe resented and undermined as a result.

Implementation Mechanism< Statute and rules related to three-tiered licensure will need to be reviewed andprobably modified to reflect changes. Outreach to and negotiation with variousstakeholder groups, primarily teacher unions, will need to be pursued. Those individualsresponsible for oversight of evaluation systems will need to be trained in how the newmethodology works. Statute changes will require legislative action and executiveapproval; rule changes will be handled through PED and a public review process.

< Teacher contracts will need to be reviewed and modified to provide for proposedincentive structures and to conform to alignment between teacher performance andstudent academic growth.

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Other Options< Before putting such an evaluation program in place across all districts statewide, itmay make more sense to pilot the effort in a handful of districts. Such a rollout planwould provide for adjustment of those dimensions in which problems have arisen priorto full implementation as well as producing a better chance to build commitment andconsensus across stakeholder groups. If successful, it might be worth the effort toexplore the possibility of establishing a link between student performance and theevaluation of superintendents and local school board members.

< School district should do a better job of targeting professional development to the needs of specific schools.

31. Implement the proposal in the state's race to the top application to establish a linkbetween student growth and teacher performance and a corresponding link between teacherperformance and teacher preparation programs, with the professional practices andstandards commission recommending that the secretary of public education closepersistently ineffective teacher preparation programs. (OEA — Hughes)

NOTE: The link between student academic performance and teacher evaluation was addressed inItem 30 and will not be revisited in this section.

Overview< See Item 30. It stands to reason that a well-prepared teacher, meaning one who hashad an excellent subject matter and pedagogical education, will outperform one who isnot so prepared. As noted in Item 30, teachers are the single most important school-based factor in the calculus of student achievement. In line with the national movement,New Mexico has begun to establish those linkages through its educator accountabilityreporting system (EARS). This proposal goes further by recommending that thesecretary be able to close persistently ineffective teacher preparation programs. Thepower to authorize curricula and programs offered through all two-year post-secondaryeducational programs is established in Subsection P of Section 22-2-2 NMSA 1978. Theauthority to close a program may be inferred in the law, but wording is not explicit as tothis power. This recommendation represents a significant expansion in the oversightauthority of PED into the realm of higher education. As a consequence, the issue willprobably need a high degree of communication and buy-in from the various institutionsof higher education (IHEs) in the state.

Cost Savings< N/A.

Time Frame< Requires statutory clarification. Likely to take anywhere from six to 12 months toaffect this change after the legislature has acted. A work group of stakeholders,including deans, faculty, teachers who have graduated from New Mexico IHEs, currentstudents, PED and HED staff, should be formed to identify all the related issues andconsider the different consequences that may emerge from this change.

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Advantages < If a teacher preparation program churns out ineffective teachers, it makes economic aswell as social sense either to revamp the program completely or to shut it down.

< Providing a clear picture of the performance of the graduates from teacher preparationprograms can give IHEs a clear sense of where program strengths and weaknesses lie. They can then use this information to adjust and strengthen those areas that need extraattention or a change in staff and help further bolster those areas identified as beingstrong.

< Graduate performance data can help inform choices made by students who areinterested in entering the teaching profession. The information could also be used byoutside funding entities who are interested in providing monetary support to successfulteacher preparation programs.

< School districts complain that they must spend time and resources to teach graduatesof teacher colleges how to teach. If teachers are properly prepared, simple mentoringwill be sufficient to assist new teachers and school districts will be able to redirectresources to other matters.

< Although we do not have a state statistic on the turnover rate for beginning teachers,nationwide, 50% leave the profession within the first five years, thus suggesting theproblem is not unique to New Mexico colleges of education.

Disadvantages < Beginning teachers often take a few years to get acclimated to the field and rigors ofteaching. As a consequence, early performance may not be a true indicator of thequality of a teacher preparation program.

< If decisions for continued funding are made too rashly based on early data, effectiveteacher preparation programs may be unnecessarily punished, thus producing anunintended consequence of reducing statewide capacity for educator preparation andunwarranted degrading of the overall reputation of an IHE.

< Beginning teachers often are assigned to high-need schools, with the result that theirearly performance is directly affected by several factors outside their control, e.g.,poorly motivated or performing students, toxic school cultures, poor community supportmechanisms or the lack of adequate mentoring and professional development.

Implementation Mechanism< Statute and rule changes will be required. Coordination with the deans and staff ofthe various colleges of education will need to be achieved in order to develop consensusand agreement on how the linking will work. The national council for the accreditationof teacher education accreditation provisions should probably be reviewed for alignmentwith the linking objectives.

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< University faculty contracts may need to be reviewed and modified to account foralignment between their performance and the outcomes realized by program graduates.

< The boards of regents of the various IHEs will need to be consulted as they have theauthority to approve any of the proposed accountability plans for their respectivecolleges of education.

Other Options < Develop some other approach based on full, reasoned input by representatives offaculty and administration from all colleges of education. The proposal put forth in therace to the top application was done under "hothouse" conditions and should becompletely reviewed prior to implementation.

32. Provide signing or relocation incentives for Level 2 and Level 3 teachers to teach inhigh-needs schools. (LFC — Aguilar/Gudgel)

Overview< Many schools and districts face challenges in hiring and retaining qualified andcompetent teachers. Schools considered hard to staff, those with high concentrations oflow-performing, socioeconomically challenged students, face high teacher turnover andhigher percentages of teachers who are not qualified to teach the subjects they areteaching.

Cost Savings< Could cost money rather than save money; however, incentives may improve qualityof education in high-needs schools and increase student achievement.

< NOTE: Not all incentives need to be monetary or structured as bonus pay toteachers. There may be other incentives that are equally effective.

Time Frame< Short- or medium-term — will require formula changes to provide incentives fordistricts to increase compensation to teachers moving into high-needs areas.

Advantages< Signing and relocation incentives aimed at higher-level teachers (Levels 2 and 3)allow less desirable, high-needs and rural assignments to recruit, attract and retainhigher-quality teachers.

< Limiting incentives to Level 2 and Level 3 teachers ensures experienced teachers arerecruited.

Disadvantages< Monetary incentives have mixed success in attracting teachers to high-needs schoolsand even less success in helping schools retain them.

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< Monetary incentives will not compensate for the lack of support that exists inhigh-needs schools that often contributes to high teacher turnover.

< Educational funding is diverted from other uses to increase teacher compensation.

Implementation Mechanism< High-needs districts can allocate SEG dollars to incentives, or school improvementfunding can be used, if available.

< Implement formula changes to provide incentives.

< Criteria for eligibility should include at a minimum a limitation to Level 2 and Level 3teachers who did not teach at the high-needs school the previous year, possibly more.

Other Options< Limit signing and relocation incentives to teachers teaching core subjects and payableover an extended period of time to ensure qualified teachers are retained.

< Tie signing and relocation incentives to student growth to ensure teachers areeffective in the classroom.

< Allow signing or relocation incentives for Level 1 teachers. While Level 1 teachersare not as experienced as Level 2 or 3 teachers, they often are eager and enthusiastic toteach and may have the benefit of newer research-based teaching approaches.

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APPENDIX D

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LCS Legislative Council Service

“Listen to what the worker bees have to say instead of 

the queen.  Those of us who are doing the work know 

what we need and don't need.  Administration has no 

idea what really goes on.”

‐ anonymous public employee

STATE GOVERNMENT EFFICIENCIES AND 

EFFECTIVENESS SURVEY

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WHO RESPONDED?

968 state employees from more than 40 agencies

66%  non‐supervisory employees23%  management employees (classified)11%  management employees (appointed or exempt)

0.0%20.0%

40.0%

Less than a year

1-5 years

6-10 years

11-15 years

16-20 years

Over 20 years

How long have you been a state of New Mexico employee?

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LCS Legislative Council Service 3

29%of the survey respondents plan to leave state government in the next 

three years.

Why?

LCS Legislative Council Service 4

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0 10 20 30 40

altruism

city

commute

family

flexibility

job security

marriage

term expired

benefits

moving

procurement

federal

no advancement

other

school

work environment

pay

QUESTION6Do you plan on leaving state government in the next three years? 

If so, why?

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Question 6 Samples

*PAY –“Our insurance premiums are going up and our paychecks are getting smaller. How can we support our families when state employees aren't supported adequately?”

“I'm tired of barely making it as it is and being taken advantage of by doing more work (due to hiring freeze) and having more money taken out along with furloughs! How much more do we have to give the state?!?!? State employees have done their part! Quit taking more from us! PLEASE!”

*WORK ENVIRONMENT –“State government places no real pride in having long‐term employees.”

“Favoritism, nepotism, management and sexual harassment issues everyday.”

“Love my job, just tired of the inconsistencies and favoritism.”

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SURVEY RESPONDENTS IDENTIFIED THREE CRITICAL NEEDS IN THEIR AGENCIES:

BETTER TECHNOLOGY AND EQUIPMENT

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0

50

100

150

200

250

300

350

Better technology/equipment

Better training

Better technical support

Customer feedback

More decision-making authority

for employees at the point of

service

My agency/department needs:

Strongly Disagree

Disagree

Agree

Strongly Agree

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BETTER TRAINING

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0

50

100

150

200

250

300

350

Better technology/equipment

Better training

Better technical support

Customer feedback

More decision-making authority

for employees at the point of

service

My agency/department needs:

Strongly Disagree

Disagree

Agree

Strongly Agree

AND

MORE DECISION‐MAKING AUTHORITY ON THE FRONT LINES

LCS Legislative Council Service 8

0

50

100

150

200

250

300

350

Better technology/equipment

Better training

Better technical support

Customer feedback

More decision-making authority

for employees at the point of

service

My agency/department needs:

Strongly Disagree

Disagree

Agree

Strongly Agree

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WHILE MANY RESPONDENTS ARE EXPERIENCING WORKLOAD OVERLOAD

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0

50

100

150

200

250

300

350

400

Management

Clear vision and goals

Customer service

Effective use of budget and other

resources

Workload distribution

Administrative support

Oversight and effectiveness of

contracts (e.g., who gets them and

whether the work could or should be …

Overall efficiency

I give my agency/department the following ratings:

Poor

Mediocre

Good

Excellent

THEY STILL FEEL THEIR AGENCIES SERVE THE PUBLIC WELL

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0

50

100

150

200

250

300

350

400

Management

Clear vision and goals

Customer service

Effective use of budget and other

resources

Workload distribution

Administrative support

Oversight and effectiveness of

contracts (e.g., who gets them and

whether the work could or should be …

Overall efficiency

I give my agency/department the following ratings:

Poor

Mediocre

Good

Excellent

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0% 20% 40% 60%

other

scheduling

duplication of efforts with another agency

mail and shipping

overtime

duplication of efforts among in‐house staff

publications and printing

process improvements

office supplies and furniture

technology

overly bureaucratic processes or procedures

staffing levels

travel

QUESTION12Examples of how my agency/department could save money:

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Question 12 Samples

*TRAVEL  –“More meetings should be held in‐house or online.”  (many comments on teleconferencing , video conferencing and telecommuting)

“Limit use of company cars, no personal use of vehicles.”  (many comments on state vehicle use)

“We pay for so many victims to fly here for court and half of the time, the court gets cancelled and we just spent a lot of money on the flights, back and forth, motel, food. It's ridiculous.”

*STAFFING LEVELS TOO LOW TO CUT FURTHER OR TOO TOP‐HEAVY –“Severely understaffed. Exempt staff working many hours of unpaid overtime.”  (many comments on understaffing)

“Always need more, never been fully staffed.”

“Too much management – not enough workers.”  (many comments on top‐heavy staffing)

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0% 20% 40% 60% 80%

other

water

electricity

lighting

heating and cooling

QUESTION14Examples of how my agency/department facility could be more 

efficient with the use of:

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Question 14 Samples

*ENERGY‐WASTING FACILITIES –“If HVAC system worked more correctly we wouldn't need so many fans and space heaters.”

“Having operable windows instead of using the HVAC system, particularly in spring and fall.”

“Light switches affect multiple areas, which would be better served by having their own light switches so that unnecessary lights could be off.”

*ENERGY‐USE MONITORING –“Make energy usage reduction a requirement (e.g., lights, computer monitors left on) and inform management when not met.”  

*RENEWABLE ENERGY AND WATER CONSERVATION –“Put solar panels on the roof to run the interior lighting.”

“Put in a water collection system for watering the grounds.”

“Waterless urinals.”

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0% 20% 40% 60% 80%

counterproductive regulations

too much staff

data from elsewhere can't be read

burdensome administrative procedures

lack of a defined mission, purpose or goals

turf battles with other agencies

too many layers of decision‐making

piles of paperwork for simple tasks

outdated technology or equipment

no backup staff with expertise

high employee turnover

internals staff conflicts

not enough staff

low employee morale

QUESTION15The following are examples of problems that make my agency/department limp along when it should be flying:

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Question 15 Samples

*LOW EMPLOYEE MORALE –“Low pay and not enough people to do the work so everyone is working extra hard...yeah, morale is low.”

“Too much work.  Don't feel like time off can be taken.”

“Comes from upper management creating positions and filling them with their friends from outside.”

“Only when things go to hell does the administration ever comment on work of employees.”

*STAFFING/WORK LOAD –“We have fooled the legislature for years by not letting them know how understaffed we are.”

“Way less staff than is really needed for the amount of work.”

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0 10 20 30

supplies

medicaid

vehicles

mailing

procurement

training

facilities

contractors

general

other

printing

travel

health

cooperation

court proceedings

IT

meetings

work environment

staffing/work load

process/paperwork

management

QUESTION16I can't figure out why my agency does the following ‐ it seems like 

a waste of time and resources:

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Question 16 Samples

*MANAGEMENT –“Why are incompetent top administrators appointed who have NO leadership skills and basically do nothing to keep the agency running smoothly?”  (many comments on management competence and qualifications)

“I really can’t figure out why the management team does anything they do because they do illogical things without telling the staff about it.”

“So many levels of management; so many levels of purchase approvals.”

*PROCESS/PAPERWORK –“Federal time reports ‐ what a complete waste of staff time!”

“Almost every single document that needs approval needs at least 7 signatures.”

*STAFFING/WORK LOAD –“Continuously hiring and training new people.”

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0 50 100 150 200

barebones already

doing okay

resources

budget

information

transportation

audits/investigations

consolidate ‐ NO

facilities

communication

cooperation

process/paperwork

IT

management/planning

restructure

training

pay

purview

general

consolidate ‐ YES

work environment

staffing/work load

QUESTION19If I were in charge of restructuring my agency/department, 

the most important thing I would do is:

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Question 19 Themes

*RETAIN EMPLOYEES –“Our training costs would put a private sector business out of business.”

“In times like these, we have seen cutbacks, but it appears it is the employees who knew what they were doing were cut in some agencies and that has slowed things down considerably.  Less experienced, lesser paid employees and fewer of them are trying to keep up with an ever‐growing caseload and eventually, the system itself will implode.”

*ADJUST STAFFING –“more support staff, fewer managers” “not enough front line workers”

*ENCOURAGE TRANSPARENCY WITHOUT FEAR –“I take the 5th for my own protection. In other words, we are paranoid about repercussions, and for good reason.”  (several comments on fear of reprisals for participating in the survey)

*CONSOLIDATE –“Consolidate bureaus based on similar objectives.”

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0 50 100

audits/investigations

budget

equipment

supplies

transportation

travel

doing okay

procurement

management/planning

resources

communication

cooperation

general

process/paperwork

purview

training

IT

pay

staffing/work load

work environment

QUESTION20I would be more effective in my job as a state employee if:

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Question 20 Themes

*LOW MORALE –“If I wasn't so worried I was going to be laid off or furloughed every time I turned around.”

“If there wasn't so much corruption in state government and then no one wanting to take responsibility for their actions.”

“I would like to see an advocate that had power to make changes, because when we complain of management abuse no one hears who has any power ‐ so people who do all the work and show up every day with a desire to do good are not abused by an apathetic institution that gives lip service to us.”

*WORKLOAD OVERLOAD AND UNDERSTAFFING –“If I could just do the job I was hired to do, rather than the work of 2 other vacant positions.”  (many comments on staff filling in for vacancies)

“If there were more of me!  Instead of one person trying to cover 3 large counties.”

“If I didn’t have to wear so many hats.”

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0 20 40 60 80

audits/investigations

communication

equipment

legislature

other

travel

doing okay

management/planning

procurement

transportation

work environment

general

training

consolidate ‐ NO

facilities

purview

IT

restructure

bare bones already

process/paperwork

consolidate ‐ YES

staffing/work load

QUESTION21If I were in charge, my agency/department could consolidate or eliminate units, offices, bureaus, divisions, programs, projects, 

positions or other activities as follows:

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Question 21 Themes

*POLITICAL APPOINTEES –“Get rid of political hires and ‘made for’ positions.”  (many comments on political appointees and governor exempts)

*TOP‐HEAVY STAFFING –“I would reduce the number of supervisors so they wouldn't be stumbling over one another.” 

*PROCESS IMPROVEMENTS –“The pilot program for processing assistance cases is a monster.  Clients hate it, caseworkers hate it and the wait time in lobbies is horrible.”

*FACILITIES CONSOLIDATION –“Eliminate all the duplicate offices that many employees have ‐ two of everything ‐ this would help to reduce the excessive floor space that is being leased and reduce the agency rent budget.” (several comments on duplicate office space)

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Final Comments and Suggestions

“Hire staff rather than contractors ‐ especially out‐of‐state contractors.  Let's give some of this work to NM residents.”

“Require employees to evaluate their managers and supervisors annually with effective removal for poor performers, just like employees are evaluated.”

“Rather than hiring from the top down, hire from the bottom up.  This would not burden the budget as much as in the recent past and would create opportunities for new energy to join the State Government workforce ‐ which is desperately needed.”

“Stop the stereotype that all state employees are lazy ‐most I know are underpaid and hardworking.”

“Any government that wishes to impress its citizens with how well government is run needs to start with the Motor Vehicle Department and the Schools ‐ the entities that touch more lives than any other.”

“Require that all state employees who drive state cars between Albuquerque and Santa Fe on state time use the Rail Runner instead.”  

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Limit the governor to “four appointees total.”

“Establish an anonymous 800 complaint line.  The staff know all.  The current economic climate prevents anyone from disclosing incredible indiscretions and nepotism.”

“Move state agencies that are paying rent into GSD‐owned buildings since there are a lot of vacancies which cannot be filled, thus, a lot of empty spaces.”

“Do financial audits ‐ question everything.” (many responses calling for audits)

“I believe there are too many higher education institutions and branch campuses.  As a result, scarce resources are spread too thin and we do not achieve excellence in any field.”

“Stop wasting money on stupid things like spaceships!” (Rail Runner appears in several similar comments)

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“Part of the problem is that the government 

restructuring task force was given an impossible task, in 

terms both of scope and time.  The danger of such a 

situation is that superficial discussions may lead to 

hastily conceived legislation with a high potential of 

unintended consequences.”

‐ anonymous public employee

*CENTRALIZE SERVICES –House all department/agency general counsel staff at the Attorney General’s Office rather than at the agency.

Have Workforce Solutions Department handle all agency job listings.

*DECENTRALIZE SERVICES –Eliminate the Department of Information Technology and return all IT functions to the agency level.  (many comments to eliminate DoIT)

“Our IT person should answer to us, not to a centralized IT department.  Ask any state that has tried having a separate IT department, they'll tell you that it is an inefficient way to handle IT.  One example: we have spent MONTHS trying to get IT ‘leadership’ to respond to our need for access to online training materials, such as webinars, meetings, etc, this is particularly important since we're not allowed to travel.  It is the only way for us to keep our skills up to date.  We still don't have permission.”

*REFOCUS SERVICES –Expand prevention programs to save expense of treatment programs in Department of Health.

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“I am concerned about restructuring in a time of 

financial crisis and at the change of an administration.  

I realize that study has been done on this issue and 

appreciate the opportunity to comment through this 

survey.  But I feel that more employee involvement 

and buy‐in with regard to this process is crucial and 

that there has not been enough.”

‐ anonymous public employee

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